Is there some flaw in my logic?
Say I was gifted a decent sum of money (in the mid 6 figures) from a family members will, is there something I'm overlooking that would not make sense about buying into essentially the same portfolios that a top hedge fund has?
Their holdings are publicly available on the internet and most of them have decent returns, it just seems like it's almost too easy I guess, am I missing something?
One thing that pops into mind immediately is that a lot of funds won't disclose their best/most current investments immediately....so you may miss a lot of the upside by following that strategy.
You can try that but it likely won't work out. You are more likely to generate something useful by doing your own research and trying to find opportunities that others haven't found yet.
Equity positions need to be disclosed. Not derivatives or several types of credit positions. How do you know they aren't doing a capital structure trade? How do you know that isn't stale info and they haven't gotten out of a trade?
If it were that easy, wouldn't everyone be rich? Why would you pay a hedge fund 2/20 if you could just replicate their performance copying their filings?
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