Re:Medallion Fund “Stretches Explanation to the Limit,” Prof...
by dmwallin on Wednesday January 29, 2020 @12:28PM
(#22183235)
Your assessment assumes a perfectly rational, 100% transparent market. The market obviously has a distribution of rationality and transparency. The most efficient parts of the market are going to be the parts that are largely rational and/or highly transparent. Making money in the remaining more irrational/opaque parts of the market is not as simple as just identifying it as inefficient, it requires either finding a pattern in the irrationality or a way of unlocking hidden information(ideally legally).
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Re:Medallion Fund “Stretches Explanation to the Limit,” Prof...
by throw0101a on Wednesday January 29, 2020 @12:33PM
(#22183297)
> ... or a way of unlocking hidden information(ideally legally).
One example of which is hedge funds using satellite imagery:
* https://news.ycombinator.com/item?id=20243810
* https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satel...
* https://www.theatlantic.com/magazine/archive/2019/05/stock-v...