they invest in often don’t generate any additional risk adjusted return.
When you worth more than $1 mil, you’ll be persistently advised invest in S&P and gov bonds for 95% of your portfolio. And it’s probably the main job of investment managers – to convince their clients that YOLO/BTC-to-the-moon is not a sustainable investment strategy.
For the 10% of more sophisticated clients, investment managers fall into information asymmetry dilemma. Hedge funds tell very little to their client about fund’s investment strategy and they often lose money nonetheless.
TLDR: even if you’re rich, the market will eat you up, don’t let that happen
When you worth more than $1 mil, you’ll be persistently advised invest in S&P and gov bonds for 95% of your portfolio. And it’s probably the main job of investment managers – to convince their clients that YOLO/BTC-to-the-moon is not a sustainable investment strategy.
For the 10% of more sophisticated clients, investment managers fall into information asymmetry dilemma. Hedge funds tell very little to their client about fund’s investment strategy and they often lose money nonetheless.
TLDR: even if you’re rich, the market will eat you up, don’t let that happen