Suppose as a domain expert you highly suspect company X will fail within timeframe Y. This company is pretty small and there is a reasonable amount of irreducible uncertainty so you (or anyone else) could make a maximum of $10k off of this bet. It costs you ~nothing on the margin to take this opportunity, but it would cost BigFund more than $10k in opportunity cost to acquire this information and act on it, so it’s not worth it to them to bother with it.
Also, the market underestimating me is a good thing for my bottom line.
Suppose as a domain expert you highly suspect company X will fail within timeframe Y. This company is pretty small and there is a reasonable amount of irreducible uncertainty so you (or anyone else) could make a maximum of $10k off of this bet. It costs you ~nothing on the margin to take this opportunity, but it would cost BigFund more than $10k in opportunity cost to acquire this information and act on it, so it’s not worth it to them to bother with it.
Also, the market underestimating me is a good thing for my bottom line.