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Tradeworx and SAC

Tradeworx, here. They have some good data here.

Tradeworx is a financial technology company based in Red Bank, New Jersey. We operate an equity market neutral hedge fund and a high-frequency proprietary trading business, and license our trading platform through our affiliate, Thesys Technologies.

Matt Levine, Bloomberg, Why Are the Feds Protecting SAC Capital’s Investors? here.

A hedge fund’s investors tend to have more insight into its strategies than do an investment bank’s. How many JPMorgan shareholders knew about the London Whale strategy? I mean, the SEC fined JPMorgan(‘s shareholders!) for concealing the details of that strategy from its shareholders. Good stuff. Hedge funds are “secretive,” I suppose, but no one is unaware that SAC does mostly fundamental long/short equity investing through decentralized teams of investment professionals. No one who invests in SAC is unaware that it makes bags and bags of money, far in excess of typical equity long/short returns. Nor are they unaware that it charges above-market fees. It is pretty hard to consistently beat the market by investing in stocks. If your hedge fund does, you’re sort of on notice that it’s doing something unusual. What could it be? You might ask.

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