If anyone has seen Aquateen Hungerforce “the attack of the mooninites”, then they have seen a graphic representation of two dimensional beings in a three dimensional world.
These talking heads constantly talking about the “fundamentals” are like the mooninites. They do not consider real fundamental datea such as a) the number of legitimate shares a company has issued, b) the number of shares which have been sold, c) the delta between the two.
These hedge funds have employ computer programmers to make trades by automation. They are up against people who have played video games and have learned that any program has predictible responses to a given input.
Additionally, the hedgies need MIT and Harvard graduates to manage their computers in order to calculate and react to a wide set of variables.
They are up against people who routinely calculate the damage effect of a weapon, modified by added effects and further effected by innate and added modifiers on a taqrget with damage resistances with a base value, modifiers and perks, then calculate the delta over time to “grind” the program until a desired outcome is achieved, taking into consideration such things as the effects of environment, various damage types, and the attributes of all of the characters involved.
These people are not tweaking programs created years ago to react to situations relialized months ago, but are doing this IN THEIR HEAD IN REAL TIME.
Perhaps some of the hedgies should play a video game.
We can calculate multiple effects simultaneously and understand them as fundamentals. The most these talking heads can calculate is the price to earnings ratio. Then they say we are uninformed.
I would say OK, Boomer, except I am a boomer and most of these MIT and Harvard grads are not.
Just buy and hodl. The calculations keep coming up the same and every one of them are a “fundamental” aspect of this trade.
Hedge funds have quants on their team and those are the math geniuses. They pay big salaries for that talent.
While they can compute crazy data, they do work with highly sophisticated algorithms to achieve their goals.
They can analyze and model different scenarios and tell the algo’s what to do in order to get those outcomes. One thing they didn’t see coming and account for were a bunch of idiots like us that would come in and buy and hold and confuse their models.
No matter how they crunch numbers at this point, there isn’t an easy way out for them.