Arbitrage Opportunities Quotes

You know what term you don't hear anymore? Arbitrage. The markets have gotten too efficient.

Institutions like mutual funds often worry that if they disclose their plans to buy a stock, copycats will move quickly and drive up the stock before the purchase is completed.

Hedge funds try to produce above-average investment returns using tactics ranging from traditional stock-picking to complex derivative and arbitrage plays. High minimum investments, redemption restrictions and aggressive strategies make them suitable mainly for more sophisticated and well-heeled investors.

The one thing about markets is that they do not give any advance notice. If they did, they would be arbitraged away.

The markets are efficient over time.

The nature of markets, and that includes player acquisition markets, is such that sooner or later any set of successful formulae that provide an excess return above investment are discounted.

The proposition is that prices reflect all available information, which in simple terms means since prices reflect all available information, there's no way to beat the market.

The idea that big buyside firms are going to come in and trade mano-a-mano with high-frequency trading firms shows a lack of knowledge of the business.

LTCM lost money when Russia defaulted on a certain class of bonds, and then they had other investments like on the spread between two different kinds of shares of Royal Dutch Shell Oil Company. Now that seems completely unrelated to Russian bonds. But they were related because other hedge funds saw similar discrepancies and they were all making similar bets.

I’ve worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher with thank-you notes from parents, but rewards those who can detect the mispricing of securities with sums reaching into the billions.