Kenny explaining how hedge funds work [[2022-11-28]]❌
a hedge fund might purchase stock X, they will also purchase stock Y that goes up if stock X goes down (ie hedge) but lets also assume it take some amount of time for those correlations to play out. The hedge fund makes money if they can execute the trade before the market reprices both assests hedge funds tend to blow up when prices move very fast and against all prior data ie This has never happened before and it happend over night