chronic - to take advantage you don’t trade, you wait acute - to take advantage you don’t wait, you trade the answer is in the definition. a chronic inefficiency is a multi-year issue that takes forever to unfold and requires great conviction over time. an acute inefficiency is a second-to-minute issue that requires quick ins and outs to take advantage. acute = program trading chronic = warren buffet
so the time horizon for hedge funds according to the definition is multi year?? and what about the examples of these inefficiencies… my idea was as its acute and easily sorted a few trades shall sort it…however as chronic is a complex issue, more trading would be needed to sort that out. in addition most investors focus on chronic although acute is easier to tackle(shwezer) i have accepted taht iam in all probability -1 on this one. but from understanding point of view i still need a valid explanation of why the hedge funds etc concentrate on chronics(and they do trade a lot) and why the implicit inefficienicies(friction, barriers etc) dont seem like would need a lot of trades to sort out… sorry for being so pushy on this one…but just for my understanding