Sigmatron stock drop

[ZGWZ]

@ZGWZ

Of course, it is even less likely that they will be able to overcome the wilder VIX and cryptocurrencies (note that Bitcoin is the least volatile cryptocurrency other than stablecoins).

Hedge funds are just not as degen as WSB apes

@ustonapc

@ustonapc

As an advise, most trading done by investment banks/hedge funds in VIX, cryptos, private equity and technology stocks.. etc are not gambling and you should probably stop commenting on these investments without the proper knowledge and understanding. (I have over 15+ years exp working in investment banking.)

No, zilch, zip, nada, nothingburger

Your model returns stocks you don't like

Using fund returns and fund stockholdings, we investigate whether fund managers follow fundamental analysis strategies. We show that hedge fund and mutual fund returns tend to load negatively on the long-short returns of a comprehensive sample of fundamental strategies (i.e., accounting anomalies), suggesting that fund managers are prone to trade in the opposite direction of what fundamental strategies prescribe. The negative loadings are primarily driven by the short-leg of the anomalies, m…

The truth you can't deal with is not my problem

EFMA%202021_stage-2049_question-Full%20Paper_id-344.pdf

Not only do institutional investors not engage in so-called “arbitrage”. They even increase “mispricing” and increase the market failure, just not as much as retail investors do. It's not “smart money vs. dumb money”, it's “dumb money and dumber money”.

AC21P3080_Taking-Sides-on-Return-Predictability.pdf

Trading basically means pricing by the investors, of the investors and for the investors. But investors are re...uninformed and unsophisticated.

Firms and short sellers tend to be the smart money—both sell stocks with low expected returns, and their trades predict returns in the intended direction. Firms, however, also seem to possess private information, while short sellers do not. Retail investors buy (sell) stocks with low (high) expected returns and their trades predict returns opposite to the intended direction. All 6 types of institutional investors are weighted towards stocks with low expected returns, but none of their trades robustly predict returns.

Only the short-sellers as a whole are the smart people in the room.