Random Stock Picks Will Beat S&P 500 Claims A Hedge Fund Manager!

S&P 500 is one of the leading indicators of the US Stocks. Most hedge fund managers measure their performance relative to the S&P 500 Index. Very few are able to beat it. One safe investment strategy entails investing in an ETF that follows S&P 500. However there is one hedge fund manager who is claiming that this S&P 500 Index is flawed and investors can perform much better by picking stocks randomly.

With $25.5 billion in assets under management and 297 employees, David Harding’s Winton Capital is the world’s 14th-largest hedge fund firm, according to January data from investing publication Alpha magazine. Often dubbed as the “Wizard of Winton,” Harding is known in the industry for profitable long term bets on oil and gold, as well as making hay during the global financial crash of 2008.

Harding has got more than 30 years of experience developing trading systems and testing them under live market conditions. 5 years back he developed this idea of beating the S&P 500 by picking 50 stocks randomly. According to Harding he chose the stocks randomly and gave them equal weights. He immediately did better than S&P 500.

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