> Find a hedge fund that's a little slow to update their purchase price based on market changes This doesn't even really make sense. What's the "purchase pric

> Find a hedge fund that's a little slow to update their purchase price based on market changes This doesn't even really make sense. What's the "purchase price" of a hedge fund? Getting money into and out of hedge funds is a long process, not amenable to latency arbitrage. Do you mean mutual funds or ETFs instead of hedge funds? In the case of mutual funds, there used to be mutual funds with European holdings that used European closing prices when trading in or out of the fund at the US close, allowing arbitrage based on after-hours trading. However, that bug got fixed decades ago. In the case of ETFs, they are priced by the market, so there's no such thing as the ETF itself being slow to update its price. EDIT: Actually, I think instead of "their purchase price" you mean "their order limits". In most major equity exchanges, one doesn't know who's on the other side of the trades, so one wouldn't "find a hedge fund" to trade against, but rather "find a pattern of trades" to trade against. One typically wouldn't know if that pattern represented a hedge fund, a bank, etc., or maybe several different market participants that in aggregate produced an exploitable trading pattern.