There is something that is much more scarce, something rarer than ability. It is the ability to recognize ability
Robert Half
After many years doing this, my view has changed a bit! between a) and b)
a)there is a strategy with many managers that on average in the last 5 years did nothing. zero. But there is one manager in London called Ro@@@ that is doing 10% a year in the last 5 years. He is very talented. He is the best in his group, he is the best in class!
b)There is a strategy that is less crowded and where all the managers in the strategy have made 5% a year in the last 5 years. It looks like no one is talented but the strategy must be "easy" because everybody does ok
what should i choose?
i tend to short talent unless is a quant shop with thousands of trades (A casino)
my experience tells me that the outlier will revert back to the group, revert to the mean
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