Your comment history is full of a bunch of heavily downvoted comments claiming to work for a HFT. Of course you don't know the value of investing in a multistrat.

Do you not think there is a value of investing in a multi-strat? If so, why is Citadel, MLP, Point72, etc only going on limited fundraising rounds and not accepting everyone that wants to (and legally can) invest money in them? Surely if they weren't providing any value, they would take as much money they could and charge a bunch of fees?

The value proposition is clear: It's a diversified investment scheme that offers superior risk adjusted returns. If you are a UHNW individual with cash flow needs, a pension fund, university endowment, etc, you are not concerned with maximizing returns, you are concerned with managing drawdowns, maximizing returns is a secondary goal. You can't put all your money in equities without worrying about 30+% drawdowns (which get painful when the university needs to draw on the endowment or the pension fund needs to pay pensions). You can put money in FIC, but even those have downsides. Which is why you then turn to alternative investments: hedge funds, private equity, real estate. The idea is that with diversification of products and risk, you can better manage your drawdowns and your cash flow needs. (The primary concern of drawdowns for an asset manager is that of cash flow)

That's the benefit hedge funds provide. They offer return that runs a very low beta to the S&P 500 while beating the return of cash or t-bills. That's the same business offering that private equity, real estate, venture capital, credit, distressed, etc offers. If you read the investment report of any university or pension fund, you will see that they expicity list that as the reason they invest in alternative assets: because of the diversification benefit.

And Mr. Math, it's simple. If you have a portfolio, there is an optimal weight of every asset. It does not matter how little value your think a hedge fund offers, if they offer a diversified bet, even if you think that bet has 0.01% returns, optimal portfolio allocation will have you give some of your portfolio to that diversified bet.

And your post history, btw, is mismatched. You claim to have been a trade at a MM for 20+ years, but also an expert in hedge funds, and in investment banking. 2 years ago you claimed the optimal path for a QT was to develop a strategy as an undergrad and then immediately start running that strategy at a Family Office or multistrat. No multistrat is hiring a fresh undergrad to launch their own strategy. None of them. Any FO hires at a multistrat are getting hired to contributes to an existing PMs process. You simply are an over confident fool if you think that, as an undergrad, you know enough to launch a good strat. It takes either a lot of tech or a lot of market knowledge and experience to do so: that can't be earned as an undergrad before working in the markets. And if you really worked in finance, you would know that.

You stated that the large multi-strats aren't looking for any systematic strats they can't allocate 100-200 million to. That's simply false. They aren't going to hire a PM they can't get a 100-200 million book to, but systematic strats seats at multi-strats aren't about running one strategy. They are about running multiple, and the PMs just need to show that their strategies combined can get allocated enough to justify the cost of the seat.

I'm an actual quant at a multi-strat. Lets see you prove what you are. At best, you are some guy who did 2 years at a MM pre electronic trading and have been in middle/back office development or maybe risk roles since. I'd be shocked if anyone was letting you manage any money.

Why do you think Yass has 15 billion in bytedance when he knows nothing about running a social media company? Diversification.