Hedge funds overall do not outperform index funds in the long run [1]. Banks have moved mostly to sell side and their traders earn commission and bid-ask spread

Hedge funds overall do not outperform index funds in the long run [1]. Banks have moved mostly to sell side and their traders earn commission and bid-ask spread. For a while the most profitable shops are market makers who use high-speed trading to leverage tiny arbitage opportunities, profiting exactly from tiny fluctuations from an efficient market. [1] http://ftalphaville.ft.com/2018/04/24/1524542401000/A-complex-analysis-reaches-same-conclusion-as-simple-one--hedge-funds-suck/z http://ftalphaville.ft.com/2018/04/24/1524542401000/A-comple...