Comments on: The difference between retail and institutional investors http://allaboutalpha.com/blog/2008/01/24/the-difference-between-retail-and-institutional-investors/ A finance blog about hedge funds, portable alpha and alternative investing. Mon, 13 Feb 2012 11:26:54 +0000 http://wordpress.org/?v=abc hourly 1 By: Alpha Male http://allaboutalpha.com/blog/2008/01/24/the-difference-between-retail-and-institutional-investors/comment-page-1/#comment-75146 Alpha Male Fri, 25 Jan 2008 02:49:11 +0000 http://allaboutalpha.com/blog/2008/01/24/the-difference-between-retail-and-institutional-investors/#comment-75146 Very fair point, Bill. Hedge fund investors (many of them institutional) sure aren't immune to return chasing. But based on my experience selling hedge funds to institutions, I'd say it's a subconscious bias, not am explicit strategy (as we often see with mutual funds). Institutions will often take a year to make a decision and will stick with you for many more than that even if performance is poor. Still, I suppose whether the bias is subconscious or explicit doesn't really make a difference at the end of the day. There are no points for good intentions. So thanks for keeping us honest. Very fair point, Bill. Hedge fund investors (many of them institutional) sure aren’t immune to return chasing. But based on my experience selling hedge funds to institutions, I’d say it’s a subconscious bias, not am explicit strategy (as we often see with mutual funds). Institutions will often take a year to make a decision and will stick with you for many more than that even if performance is poor. Still, I suppose whether the bias is subconscious or explicit doesn’t really make a difference at the end of the day. There are no points for good intentions. So thanks for keeping us honest.

]]> By: Bill aka NO DooDahs! http://allaboutalpha.com/blog/2008/01/24/the-difference-between-retail-and-institutional-investors/comment-page-1/#comment-75133 Bill aka NO DooDahs! Fri, 25 Jan 2008 01:56:49 +0000 http://allaboutalpha.com/blog/2008/01/24/the-difference-between-retail-and-institutional-investors/#comment-75133 http://www.cxoadvisory.com/blog/external/blog1-24-08/ "In summary, presumably sophisticated hedge fund investors as a group chase past returns and fail to time their investments successfully." So, are the majority (dollar-weighted) of hedge fund investors "retail" or "institutional?" Just curious. http://www.cxoadvisory.com/blog/external/blog1-24-08/

“In summary, presumably sophisticated hedge fund investors as a group chase past returns and fail to time their investments successfully.”

So, are the majority (dollar-weighted) of hedge fund investors “retail” or “institutional?” Just curious.

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