Seems like a slightly simplified study but I think it does highlight a pervasive problem. There's too much money chasing increasingly limited strategies. Things

Seems like a slightly simplified study but I think it does highlight a pervasive problem. There's too much money chasing increasingly limited strategies. Things like start-arb and momentum used to be pretty new and relatively obscure 10 years ago but now your every-day retail trader has probably heard about them and your friendly neighbourhood data-service provider includes all sorts of factor indices as a package. I used to be a trader at a bank, the entire field/discipline of trading is a gross distortion in terms of the work they do and what they are compensated. The increasing competition sort of makes it even more twisted, the amount of effort and technology being used to squeeze out returns and enrichen these fund managers doesn't really make sense to me. I think this post (not very objective or scientific to be citing quora but I think it gives good insight) sort of shows the kind of brain drain finance has on society. https://www.quora.com/Do-hedge-funds-use-the-generalized-method-of-moments https://www.quora.com/Do-hedge-funds-use-the-generalized-met... These are really smart people staring at mostly random price data all day and applying increasingly obscure techniques to eek out a signal just so they can squeeze some money out of the guy at the other end. Why????