We discussed the hedge fund genius Jim Simmons here yesterday.
You know how his fund became so profitable?
Because he was able to predict human nature.
He knew that whenever crises would strike, the same basic human instances would come to the fore – fear, greed and desire.
Is this rocket science? Does it sound predictable? Of course!
Jim was able to create sophisticated quant models and systems to extract alpha from such situations.
Interestingly, if we want to extract alpha from life, we can predict the same things too, in ourselves, and in others. And everything’s already predicted in our scriptures. We just need to read them!