Not necessarily. Using the weight of the big funds to put your thumb on the scale of the market could absolutely shift market prices in a way that can be exploi

Not necessarily. Using the weight of the big funds to put your thumb on the scale of the market could absolutely shift market prices in a way that can be exploited to reap more reward than is lost. In fact, it is a good explanation for why the medallion fund is size-limited. Also, as someone else noted, there is a 10x size difference between the two pools of money. So the big fund can “lose” 1% which generates a 10% increase in the small fund. Then you advertise that you are capable of incredible returns to induce people to invest in the big fund. Another reason why the small private fund is limited in size.