Why are hedge funds still around?
Directed towards brokerage funds and not index or sectors.
In theory 20 years ago, I see how having a fund can make it easier to invest for large clients. But given technology in the last 10 years, why do you need this.
A brokerage needs a broker. This broker has to invest for its clients. It’s clients will have different risk profiles. I feel like that is the SEC handbook for training brokers. But that doesn’t happen with funds. Sort of making it a loophole.
What I’m getting at is a software that allows the brokers to execute trade but first they have to select the clients they are executing for.
This would open more transparency. Is the broker calling the shots or is someone in c-suite?
More importantly, what pissed me off and caused me to write this is looking at the insiders on stocks. It’s crazy how many shares are owned under 1x llc now multiply that by 20-50. One of these locks own a ton more than founders in most situations.
Why does that suck for us? Collusion! You are telling me these funds don’t talk. I’m sure they have friends and enemy’s. They destroy the market for the middle class. You will never be able to prove collusion. If there’s a movement to get rid of these big insiders, it would have to be with changing the rules.
Thoughts? Am I a bigger idiot than I already know?
Submitted August 06, 2022 at 12:57AM by DigitalCashh
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