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/biz/ - Business & Finance

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50230757 No.50230757 [Reply] [Original]

Lets ignore the trend following rules and just assume that they're given. I'm assuming that we have a managed futures type portfolio where we invest in equities, bonds, currencies, commodities...
Here's how I would do it if I managed billions of dollars:
>Permanent long and short allocations to certain asset classes where security selection (some factor strategies) is possible, i.e. equities, bonds...
>Get the rest of the exposure using futures.
Lets say that we're net 50% long equities from the security selection stage and that we should be 100% SHORT equities according to the trend... we should then go 100% short using futures. The security selection exposure should be determined by the attractiveness of the opportunity set, liquidity, operational risks (short squeezes)... We want to be able to change our net exposure quickly.
>Just go long/short the "normal" (managed futures) way if we don't have to deal with security selection...

So, we use some factor strategies for security selection and trend following and are able to capture the factor premiums in addition to the trend following returns. You could maybe also buy some out of the money put options on the market to hedge against tail risk, but that might be a bit off-topic.

What do you think? What changes would you make? Any other thoughts?

>> No.50230863

>>50230757
Finance and economics are pseudoscientific make believe garbage, capitalism is inherently unstable, exploitative and unsustainable with a built in expiration date. All finance assets like money,crypto,debt,bonds etc are purely parasitic in nature and serve no purpose nor have any inherent value and private property is theft. Ever escalating recessions, poverty, disease, pollution, slavery and wars are fundamental and necessary functions of it and every single financier or crypto dudebro is a literal parasite.

Either the stock market and blockchain is destroyed or mother Earth perishes. The changes i would make would be to destroy all the banks and redistribute all the wealth and recourses to the people. I would euthanise high authority figures in every institution and facet of society especially the finance sector. Also i would delete 4chan from every storage and server