Virtu RONA

Discussion in 'Trading' started by IAS_LLC, Feb 20, 2018.

  1. IAS_LLC


    According to virtu's 10K docs, they generated about $670M in trading revenue last year. Does anyone know what kind of trading capital they had to have to generate that? I'm curious how they would have faired vs the buffet index bet....
  2. newwurldmn


    That trading revenue is just buying and selling. Doesn't include infrastructure costs. I think their net income is around 200mm on a balance sheet of 2bn which is likely levered several times.

    So like a 10percent return and scaling issues compared to buffet.
    IAS_LLC likes this.
  3. IAS_LLC


    Roger that, the 10k calls out what those costs are, and you're correct profit was like $158M.

    But they also paid close to $100M in employee wages. Probably another $50M in benefits packages, etc.... From a pure trading perspective ( i.e trading minus fees, data, hosting)...are they really doing like 50% per year? I think they are actually beating the pants off the buffet style of investing, if the metrics are normalized in a fair manner.

    Just a thought