Well yes but the private only contribute $2 on a $20 ‘deal’. And that $2 is insulated from losses and commonly receive 3x the yield of the much larger public investor.
It’s such a scam that it beggars belief. Even if we had to ‘invest’ as such, there is absolutely no reason for the private to even be allowed to engage. The private is only there to rip off the public. They add absolutely nothing.
Few understand that "de-risking" is the risk - for how it encourages further use of leverage a la Taleb.
These are not talented people.
Well yes but the private only contribute $2 on a $20 ‘deal’. And that $2 is insulated from losses and commonly receive 3x the yield of the much larger public investor.
It’s such a scam that it beggars belief. Even if we had to ‘invest’ as such, there is absolutely no reason for the private to even be allowed to engage. The private is only there to rip off the public. They add absolutely nothing.