There are many ways of achieving extremely high Sharpe ratios (e.g. exploiting market microstructure inefficiencies), with following caveats: 1) They are not s

There are many ways of achieving extremely high Sharpe ratios (e.g. exploiting market microstructure inefficiencies), with following caveats: 1) They are not scalable (for each such strategy, market turnover capacity is very limited, and increasing it requires coordinated efforts of many smart people). This is the reason they are not taking additional investments and strictly invite-only. 2) Operations efficiency becomes the key. Execution capability has to be consistently at top of the market, and margin for error becomes nearly nonexistent. It is very easy to screw things up. Hence the need for top technical and engineering talent.