This may come across as a common sense question to some. But I'm a little stumped.
Few days ago, one of the top IBs came to my fund and advertised structure products in the form of tradable indices that meant to mimic a particular strategy. I took a broucher and saw a wealth of them.
FX carry, bond volatility, seasonal commodity trend. Some of them even advertised 5% annual returns.
Why doesn't amanager just diversify his assets among these indices. Why even bother hiring investment and research staff who could take a whole year conceiving a strategy that is essentially almost the same as one of these indicies, which was conceived by top IBs analysts and which he could invest right now.
Start a HF, diversify assets on ten indices, go for vacation, sound like a plan to me? Am I missing something?