Have you had severe withdrawals? I've withdrawn cold turkey off of a $500/day heroin habit. It is the worst pain I have ever experienced. If I had a gun on me at the time, I am 100% sure that I would have killed my self. You have no idea what you're talking about
You have no idea what you are talking about. How exactly does GS manipulate the markets to its will? You'd think their balance sheet would look better if that was case..
Why not use the computer to help you define and understand the problem? It will be much faster to iterate quickly at a repl and then write the cleaned up version later rather than just trying model the whole thing in your head first
I'm not sure the fees are going to go down so much as that a ton of hedge funds are going to go out of business. There are many funds generating real alpha and have made outsized returns year after year (Renaissances' medallion fund has made something like 40% per year average since inception). DE Shaw, 2 Sigma, Renaissance, Tudor, Bridgewater, AQR have all historically done pretty well.
On the other hand, there are a ton of hedge funds that have never generated alpha in their entire existence and lack even the most basic modicum of skill.
A 2% fee isn't very much considering the AUM of hedge funds. If you have a 250m fund, that's only a fixed 5m fee per year. Also, investors are very fickle with their money, you can't not be generating alpha for that long before clients pull all of their money.
Fees have gone down in the past couple years, Tudor slashed their fees from 3 and 30 (which is ridiculous) to 25 and 2.25 (still kinda high). Many other hedge funds have gone to 15 and 1.5.
The problem with hedge funds at the moment isn't that they are making bad security choices individually, but that taken together, a short list of securities becomes very crowded, which really hurts liquidity (though this crowding isn't calculated in their liquidity metrics, so they think they have liquidity even though they really don't)
There's not much that needs to be elaborated. Hedge funds don't make any money if they're not generating alpha. the 2 and 20 structure is powerful motivator to search for outsized returns. Hedge funds are in a hard place right now, with a lot of capital being moved out of the industry due to poor performance.
Every hedge fund guy I know constantly stresses about the overall lack of alpha generation in the industry right now. To say thet the point of hedge funds is to avoid taxes is just ridiculous. A company doesn't need to invest in a hedge fund to engineer the type short-term losses and long-term gains. And there's no reason they would, the fees are simply too high for anyone to ever do that.
What, exactly, do you think is going on here? How on earth would the executable on the disk get modified by pointer manipulation? (without the use of mmap, of course)