Any time you have private information that the market doesn’t have you should bet to move the market in the direction of your information. The difficult question is how much you should bet.
I don’t think that’s true. If it would be true I don’t think most mutual fund managers would underperform the SAP 500. A mutual manger might get some superficial information about stocks he invests in that take actual research.
I don’t think that’s true. If it would be true I don’t think most mutual fund managers would underperform the SAP 500. A mutual manger might get some superficial information about stocks he invests in that take actual research.
Mutual fund managers have incentives other than maximizing expectation of price. OPM.
Also, they likely overestimate the value of their privileged information.