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The hedge fund business is and has always been based on insider trading. Ockham’s razor looms large over this conversation.
by CPLX 7y ago
The hedge fund business is and has always been based on insider trading. Ockham’s razor looms large over this conversation.
- smabie 7y agoIf that were true, you’d expect that as a group they would have better risk adjusted returns. I personally have not witnessed any insider trading in the industry and suspect it quite rare nowadays. It was more common in the past, though.
- papln 7y agoSome hedge funds are good at it, and some are bad it. The existence of a winnable game doesn't mean that everyone who attempts it will succeed. Especially since the game is competitive, so if I have better insider information than you, I can take from you you all the money you take from the non-insider traders.