looks like most hedge funds seem to have gone systematic…seems like its much easier to sell black box systems …know of any good funds that trade discretionary
It’s harder to sell discretionary trading to investors, particularly after many traders messed up over the last two years (you have to get both direction and timing right). Somehow the fact that black boxes also mess up doesn’t seem to scare investors so much, because, after all, they’re computers, and they messed up because they were programmed wrong, rather than that they freaked out, so, obviously (sarcasm here), they’re better. With a discretionary trader, you sell your track record as your way to make better decisions. With the Volker rule on prop trading, it will be a challenge to see how the next generation of discretionary traders is likely to be trained. There are still home day traders, there are still funds like Moore capital, Soros must exist in some form, but most discretionary investors got their start as prop traders in some shop. I’d be interested in what funds trade discretionary. I’d look for macro funds and multistrategy funds (which sometimes have discretionary traders as one of the multiple strategies). Also, I’d look for “opportunities” funds. “Opportunity” is a kind of code word for “identifying investments/trades without having a specific pre-defined system (like value/growth/momentum)” these funds probably do have some kind of overall system, but it is one that may leave more room for discretionary thinking.
Discretionary equity trading? Probably going the way of the Dino. Credit trading probably more human interface Energy and commodities in general (GB09 can chime in here) probably more human interface. Harse trading, 100% flesh and bone baby!
Actually it’s a growing business. Discretionary trading makes up the majority of assets under management for most RIAs.
RIAs??
Registered Investment Advisors. They’re the fastest growing segment of the advisory world at the moment. Lots of wirehouse guys are fleeing and setting up their own RIAs. Their are some gigantic ones out their; billions under management. Some do hedge funds, but most just manage their own portfolios for individuals, institutions, defined benefit plans, etc…
Sweep the Leg Wrote: ------------------------------------------------------- > Registered Investment Advisors. They’re the > fastest growing segment of the advisory world at > the moment. Lots of wirehouse guys are fleeing > and setting up their own RIAs. Their are some > gigantic ones out their; billions under > management. Some do hedge funds, but most just > manage their own portfolios for individuals, > institutions, defined benefit plans, etc… I think you guys may be thinking of discretionary trading in two different worlds. For RIAs, the PMs may have discretion but they are not actively “trading” client portfolios daily. Discretion allows them to remove/add securities as they please.
cfa caia frm i m …but how do i enter this discussion
Chuckrox8 Wrote: ------------------------------------------------------- > Sweep the Leg Wrote: > -------------------------------------------------- > ----- > > Registered Investment Advisors. They’re the > > fastest growing segment of the advisory world > at > > the moment. Lots of wirehouse guys are fleeing > > and setting up their own RIAs. Their are some > > gigantic ones out their; billions under > > management. Some do hedge funds, but most just > > manage their own portfolios for individuals, > > institutions, defined benefit plans, etc… > > I think you guys may be thinking of discretionary > trading in two different worlds. For RIAs, the > PMs may have discretion but they are not actively > “trading” client portfolios daily. Discretion > allows them to remove/add securities as they > please. This Normally they use their discretion to re balance portfolios who’s assets are sub advised.