Bad Medicine: regulating high frequency traders won’t address muddling of dark pools

Recently, I read Scott Patterson’s (@pattersonscott) Dark Pools, the somewhat disturbing recent history of high frequency trading, packaged in a superb narrative that is probably the closest to a Bond thriller that the industry will ever get. He eloquently points out the twists and turns that lead to where we are today. Starting with 24 dead … Continue reading

If you believe the efficient markets hypothesis, don’t follow this blog

In order to help you understand how to improve your investment returns, dear reader,  I wanted to rant on how academic economists, supposedly the bastions of rational thinking, independent of commercial bias, the smartest of the smart, created and promoted a completely irrational theory, causing millions of people to not even consider investing for fear … Continue reading

Jim Simons

Nice career retrospective by Jim Simons: MIT Video – Mathematics, Common Sense, and Good Luck: My Life and Careers. Here were his so-called hot tips: go with the computer models great people great infrastructure open atmosphere everybody knows what everyone else is doing no compartmentalization

Weekend Linkfest 102: macro mini celebrities, revisiting software development ideas, and an XP practice smorgasbord

Global macro links Blog of macroeconomic mini-celebrity Steve Keen Ray Dalio of Bridgewater, and his ideas on how economies really work What we actually know about software development, and why we believe it’s true: given primarily to students, but still interesting and entertaining nonetheless. “Code review is the most effective (hour for hour) way to remove … Continue reading

What is a hedge fund anyway?

In three words: leveraged absolute returns A hedge fund is a specific type of investment fund, focused on generating absolute returns, often using various types of leverage and investing in publicly traded instruments. Absolute returns mean that  the funds focus on generating a specific return, regardless of what stock market is doing. Most investment funds’ … Continue reading

CAIA Program Benefits: Why Take The CAIA Exams?

A quant trader friend of mine at a hedge fund dubbed Hedge Funds: Quantitative Insights by L’Habitant -once a major book in the CAIA program– as “Hedge Funds 101”. This is true of the CAIA program as a whole. The book itself is a good introduction to how the industry works, and how investors evaluate … Continue reading