3min chapter

The Compound and Friends cover image

The Energy Bull Market Just Started

The Compound and Friends

CHAPTER

Hedge Funds, You Know, I'm Not Running a Hag Fun

Hedge funds generally have what's called negative serial correlation. In other words, a good year is more likely than not followed by a bad year. The management fee becomes bigger than the potential 20 percent performance fee. Momentum investors bedding on mean reverting are never going to end well.

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