A High-Speed Trading Pioneer Spots a New Way to Make Big Returns.
Manoj Narang starts firm to meld HFT and hedge fund strategies
Industry veteran left Tradeworx, which he co-founded, in 2015
Way up in a Manhattan tower, next door to the fabled Carnegie Hall, a pioneer of high-frequency trading explained his new idea for reaping big returns from modern markets.
Dressed in baggy jeans and a blue hoodie, Manoj Narang drew a red line across an Expo marker board. He wrote “structural” at one end and “statistical” at the other. The former, he explained, represented his old industry -- the computer-driven traders who are all about speed. The latter he identified as statistical arbitrage, a slower strategy where orders are driven by mathematical models, often based on historical price relationships.
What no one has done until now, Narang said, is focus on the middle of that red line -- the place where the two approaches meet.
“What I’m talking about is inventing and marketing something that’s in between these two strategies,” he recently told a group of employees at Mana Partners LLC, his new hedge fund firm. “You can see the economic appeal of being able to do this.”
For Narang, who founded one of America’s most prominent high-speed trading companies in 1999, the attempt at a second act reflects both his own circumstances and those of the wider HFT industry. He left his old firm -- Tradeworx Inc. -- a year ago because of what he said were differences in vision among its leaders. HFT strategies, meanwhile, have become less profitable after years of escalating competition.
http://www.bloomberg.com/news/articles/2016-03-11/a-high-speed-trading-pioneer-spots-a-new-way-to-make-big-returns
And of course to play in this new hedge fund you probably need to be at least $100,000.00 tall to ride. (play) Couldn't this guy use his thinking talents to make the world better for all instead of helping rich people get richer?
He's most likely goods friends with the likes of Jamie Dimon and pals.
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