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A comment on The Rich Are Already Using Robo-Advisers, and That Scares Banks. Parent comment

Re:The Rich Are Already Using Robo-Advisers, and That Scares... by tosseraccount on Sunday February 07, 2016 @01:55PM (#11054170)
Medallion Fund appears to be a front running quant fund. Their reported returns relied on being a millisecond ahead of large orders. They charge a hefty chunk of that "return".

It would be very risky to assume that their advantage will continue in the next 20 years.

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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by infinite8s on Sunday February 07, 2016 @03:19PM (#11054609)
Being faster at responding to market events does not make you a frontrunner.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by tosseraccount on Sunday February 07, 2016 @04:12PM (#11054862)
Well.. What they do is often pejoratively called "front running". A carefully crated google can serve as witness : https://www.google.com/?gws_rd=ssl#q=medallion+front+running

I certainly meant it in that sense. I'm not accusing the Medallion of illegal front running.

I think people like Brad Katsuyama and fixing the "early information" problem are the answer to this kind of behavior. Katsuayama is working on a system to make the fight between high frequency traders and other investors more fair. Good write up is here : http://www.nytimes.com/2014/04/06/magazine/flash-boys-michae... ...

"Coil the fiber. Instead of running straight fiber between the two places, why not coil 38 miles of fiber and stick it in a compartment the size of a shoe box to simulate the effects of the distance. And that’s what they did."

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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by harryh on Sunday February 07, 2016 @04:58PM (#11055109)
You should read http://www.amazon.com/Flash-Boys-Insiders-Perspective-High-F... before you decide to believe anything in Flash Boys. Most of that book is ignorant at best or outright deceptive at worse.

Brad Katsuyama's dark pool is definitely deceptive.

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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by tosseraccount on Sunday February 07, 2016 @07:11PM (#11055690)
Sounds like a little pushing and shoving in the big game to me.

Play on.

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