From what I've heard... Their fund that is open to outside investors doesn't always have that good of returns. It is their private fund that makes the incredible % that everyone talks about. Everyone and their mother is doing HFT it seems. But, they don't seem to be available to the outside world. And if they are, they are watered down with non-HFT trading returns. Answer this.. If you had a HFT machine printing money, would you turn it into a fund and share those returns? Or just keep the $$ yourself? We are not talking about a technique that ties up a ton of funds at once like a typical hedge fund.
Yeah their Medallion fund is up something like 40% this year after all expenses and 15b under management while their other one is up something like 1-5% with 90b+ under management. But to be fair, I remember reading the prospectus it uses fundamental/tech, I remember in one interview they said it was not an hft.
i think they already tried that when they let the trading houses merge with the banks,your hard earned savings on the table trading credit default swaps,packaged mortgages,soveriegn debt insurance, .not sure they thought that one through
HFT was developed by entreprenuers who succeeded in making money. Those bitching & complaining about HFTs need to reassess whether they're a bunch of leftists socialists communists or whether they're capitalists. Those whiners are jealous that someone else is making money and they're not. <img src='http://img696.imageshack.us/img696/6950/hahah.gif' border='0'/> No, I am not in HFT.
Hmm maybe I should restate the problems I have with CERTAIN HFt. Front running, order flow, without an obligation to make a market. Thats it.
I tend to agree. Next people will be protesting that HFT is illegal because cost barriers to entry are high.
I can understand front running and overflow. But why should a HFT be required to make a market? Not all HFT's are performing market making type strategies.
here's a take another take on things - see attached paper or this link: http://www.interactivebrokers.com/download/worldFederationOfExchanges.pdf