Re:Algorithmic Trading: The Play-at-Home Version
by sokoloff on Tuesday August 11, 2015 @07:56AM
(#10040327)
"Standard" hedge fund compensation is 2-and-20 (2% of funds under management and 20% of gains), so a $2B fund would yield $40M in the 2% management fee. That's the "keep the lights on money".
I find it extremely unlikely (almost inconceivable, in fact) that a hedge fund would divert 10 researchers to work on a trade with $20m of potential upside.