re: Robinhood traders, led by el Presidente Dave Portnoy, beating hedge funds

Posted by shawnlsu

Member since Nov 2011

23682 posts

Posted on 6/23/20 at 5:42 pm to CatfishJohn

I'm up 100% since late March on Robinhood.
What I bought is a long play, mostly on refining that took a huge dump but has to come back.

Posted by Turtlemane

Member since May 2020

23 posts

Posted on 6/23/20 at 6:08 pm to Mingo Was His NameO

I'm still DCA'ing my index funds...but I must say I've been throwing $100 here and there and loving the results. Just made +115% on KTOV today

Posted by lostinbr

Baton Rouge, LA

Member since Oct 2017

12846 posts

Posted on 6/23/20 at 7:14 pm to Mingo Was His NameO

quote:

I’m curious about the methodology behind this chart. At first glance it would appear that retail investors have been beating the S&P, and the hedge funds, since the end of 2018. But my guess is that the truth is more complicated:

1. Robinhood has added millions of new users over the past few months. Assuming the “retail investors” line is continuously re-weighted, it makes me wonder if the chart accounts for the fact that many of these people were opening accounts and buying stocks for the first time at the bottom. In other words, it’s easy to show massive returns vs. the index and hedge funds if you were 100% in cash before the crash.

2. The retail and hedge fund lines appear to be against different index baselines? I tried looking at some of the articles containing this chart and haven’t found an explanation.

That said, I do believe that retail investors are beating the hedge funds by 15% since the bottom as stated in the linked article. That’s just a matter of risk tolerance. If the S&P goes up 1% and a stock I own goes up 5%, it’s easy to say “I’m beating the index!!” The question is what happens when the S&P goes down 1%? Or in this case, how did retail investors who were trading before the crash fare compared to the hedge funds?

If you want to tell me Robinhood traders timed the bottom, I won’t argue that point.

But that doesn’t mean it’s sustainable.

Posted by lostinbr

Baton Rouge, LA

Member since Oct 2017

12846 posts

Posted on 6/23/20 at 7:15 pm to Mr Perfect

quote:
lmao. "fundamentals" cant believe ppl still buy into that nonsense

This guy has to be a troll, right?

Posted by Rust Cohle

Baton rouge

Member since Mar 2014

2153 posts

Posted on 6/23/20 at 7:31 pm to AUCE05

Anyone remember buying bitcoin late 2017?

Posted by Mr Perfect

Member since Mar 2010

17836 posts

Posted on 6/23/20 at 7:54 pm to lostinbr

nope..def not.. you think Hertz have fundamentals dude? what about carnival or planes?

all you need to know is at this link LINK

trump need stonks to go up for reelection. so jpow fires up the machine when necessary

Posted by Mr Perfect

Member since Mar 2010

17836 posts

Posted on 6/23/20 at 7:55 pm to NC_Tigah

quote:
1999 says " Ring My Bell" .... ?

lmao c'mon dude

Posted by BabyTac

Austin, TX

Member since Jun 2008

16659 posts

Posted on 6/23/20 at 8:39 pm to Tigerfan56

quote:
Lots of guys are saying screw it I can't do anything else, ill throw a couple grand in the market.

Checking in! Working from home and with boredom threw $20K out there to play around with. Up quite a bit in a week or so, but I’m not stupid. I’m already moving it into the more gradual growth stocks.

Figured it’s a better hobby than protesting for the sake of protesting.

This post was edited on 6/23/20 at 8:54 pm

Posted by Bestbank Tiger

Premium Member

Member since Jan 2005

80858 posts

Posted on 6/23/20 at 8:48 pm to BabyTac

I jumped on beat-up stocks in March. Up modestly (between 30 and 40%) but I'm playing the long game.

I didn't buy anything with a high debt to asset ratio and I looked for dividend stocks. My only lose right now is COTY and that one should be good long term. Demand for makeup isn't going anywhere and I grabbed it on a dip.

Posted by lostinbr

Baton Rouge, LA

Member since Oct 2017

12846 posts

Posted on 6/23/20 at 8:49 pm to Mr Perfect

quote:
nope..def not.. you think Hertz have fundamentals dude?

Hertz is down 11% today, 36% in the past week, and 70% in the past 2 weeks.

Posted by rocket31

Member since Jan 2008

41887 posts

Posted on 6/23/20 at 9:15 pm to Mingo Was His NameO

the game has been exposed

Posted by Mingo Was His NameO

Brooklyn

Member since Mar 2016

37536 posts

Posted on 6/24/20 at 9:43 am to rocket31

E Trade down for anyone else? Dave is having a meltdown online. I do feel bad for the guy, he's probably going to lose a shite load of money, but his tirade was also hilarious.

Sounds like he's about to E Trades arse in the jackpot