Some new trends in the hedge fund industry will be self-destructive. For example #quant and #algo trading will be less effective in beating the market the more prevalent they become. When too many people start using the same strategies the less effective they will become since many quant funds tend to exploit the same type of market inefficiencies the more quant funds pop up the less opportunities there will be.
New hedge funds To Embrace High Tech, New Era For L/S And More
Some new trends in the hedge fund industry will be self-destructive. For example #quant and #algo trading will be less effective in beating the market the more prevalent they become. When too many people start using the same strategies the less effective they will become since many quant funds tend to exploit the same type of market inefficiencies the more quant funds pop up the less opportunities there will be.