It irritates me as well but that business is currently dying. My suspicion is that rising rates will give these guys a huge opportunity to make easy money.
Could HCM attract top talent? I’m not sure
If you have a profitable business in this area why give it away to them. If you are a talented individual then you won’t have your own track record so HCM would need to create an appropriate management team to create the money management algo. A lot can go wrong.
Yes I see that. However one might ask where these profits are coming from and are they socially beneficial? I think many of the principals of these funds argue that they make markets more “efficient”. I’m not sure I buy the concept of market efficiency, nor do I think it’s a benefit which is worth allowing differential access to markets to facilitate. I think all investors should have access to the same information at the same time. Anything else is probably just to facilitate stealing.
I think in many cases algos are just stealing ordinary investors money and muttering some mumbo jumbo to justify it. The strongest argument I have seen for hft type algos is that they steal less than the previous bank/ broker style intermediaries.
Oh great.
