Index funds have a deterministic algorithm to balance the portfolio. Hedge funds can predict this and always be slightly ahead. So whenever an index fund's algo

Index funds have a deterministic algorithm to balance the portfolio. Hedge funds can predict this and always be slightly ahead. So whenever an index fund's algorithm says to buy more of something, a hedge fund probably bought it a fraction of a second ago and will now sell it to the index fund at a slightly higher price. At least, version 1 of hedge funds did this to version 1 of index funds. It's now so complicated that all you can count on is the smartest, fastest-moving guys having a slight edge.