Monday, January 12, 2009

Hedge funds move to "easy-to-understand liquid strategies"

See this interesting article (registration required) on FT on the state of the hedge fund industry. Paul Tudor Jones, Citadel, and Fortress Investment Group are all said to be moving to "easy-to-understand liquid strategies", otherwise known as "statistical arbitrage".

(By the way, I have been urging traders to do just that in my book.)

5 comments:

Anonymous said...

Ernie, while I don't have any valuable details to share at the moment, thank you for a great blog.

N N said...

I have just begun utilizing MatLab for testing trading strategies however I am not the most confident coder. With other retail software packages I was quickly able to visually scan the chart to see if my code was doing what I wanted it to do. What method is utilized in MatLab and/or is there best practice?

Ernie Chan said...

NN: you can always plot any data in your Matlab program for visualization. Matlab has extensive graphics ability.
Ernie

John said...

You might be interested in comments on your book being posted to NP.

http://nuclearphynance.com/Show%20Post.aspx?PostIDKey=125699

Long time reader of your blog; thanks!

Ernie Chan said...

Hi John,
Thanks for the heads-up!
Ernie