This looks simple on the outside - is it really necessary to pay a percentage fee when investing this much money? I would suggest that the number of funds in excess of 100bn in the world must fit in a decent sized auditorium. That makes "Unionisation"'of the market quite possible. One could easily see a situation where all the funds just said "50 m pa or fuck off"
So my question to HN is - what is so hard (or not) about making market returns for a fund of this size?
I mean the obvious approach seems to buy 100m worth of shares in the top 1000 companies and just hold?
Perhaps it is worth not being fully invested all the time? Perhaps just making market is not worth it - but if it is, is the saving in fees compensating?
So my question to HN is - what is so hard (or not) about making market returns for a fund of this size?
I mean the obvious approach seems to buy 100m worth of shares in the top 1000 companies and just hold?
Perhaps it is worth not being fully invested all the time? Perhaps just making market is not worth it - but if it is, is the saving in fees compensating?