Wildhawk

Shooting for 100% Return in One Month

"I think that if you’re a professional money manager and you don’t make 100% return in 1 year starting today --- you should look into other forms of employment."

So you're saying that if professional money managers can't double their money by this time a year from now, they're not worth being money managers? And what, bychance, is your yardstick for this determination? Why 100% and not, say, 112%?

And at what expected level of risk (feel free to use either beta or standard deviation, whichever you'd prefer)? Should money managers who target a market neutral strategy, or those managing, say, municipal bond portfolios, also leave the business if they can't achieve the "easy" 100% return over the next year?

It's that easy, is it? Right.

The primary point your comment misses is that there are a whole host of professional money managers out there whose investable universe consists of something other than just 100% long-only smallcap equities with an expected portfolio level beta of at least 1. Even those who do have that singularly focused mandate are likely to find it challenging to achieve the sorts of returns you apparently think are so easy without taking positively laughable amounts of risk.

Comments from ignorant commentators like this detract from the real value of these blogs on what is generally a reasonably respectable site...