Its not just the Jamie Dimon story.
There’s a myth on Wall Street that may have once been true.
That there was this thing called The Smart Money. Big guys, hedge funds, institutions that have more money than other traders and investors, more resources, more experience, better information and that they somehow only made money.
Yeah, guys like Goldman’s Global Alpha Fund (remember them?), Madoff, Dimon etc…
The myth went on that if you knew what they were doing then you might have some advantage over the market and an implication was that there was also lots of dumb money out there.
Well hedge fund performance for the past 18 months flies in the face of this myth amid a difficult market and the continuation this morning of the $JPM saga.
Sure there are guys that make money and guys that lose money. Some of each group are large and small, pro and retail, high profile, low profile.
But let’s face it, the myth is dead. And thats a great thing.
The guys who make money come in all shapes and sizes. They share some attributes I am sure. Theyre smart, knowledgable, control risk well and have a great eye at the plate – taking bad pitches and swinging hard at juicy 3 ball 1 strike offerings.
The social finance web is making this fact even more clear to anyone who is paying attention. A scrappy bunch of ball players from across the spectrum are proving it everyday on StockTwits.
Guys like @traderstewie and @biggercapital and @harmongreg and @bluefielder to name only a small fraction and the list is growing.
The Smart Money Is Dead. Long Live The Smart Money!