Arbitrage
topic on 4 shows · 8 statements across 7 episodes
My First Million 
the Startup Ideas Podcast 
Capital Allocators 
the a16z Podcast
8 statements about Arbitrage, every show
Bobby Jain: Multi-Strat Funds Must Balance Mean-Reversion and Momentum Archetypes
“You have market-making strategies and market-taking strategies. And you want to balance across those things, because the market-making strategies tend to be reversionish, and the market-taking strategies tend to be momentum-y. You have momentum versus reversio…”
Asness: Inefficiencies persist because arbitraging residual errors yields poor risk-adjusted returns
“If there's an error people make on average, and people catch on to it, maybe they invest enough dollars to arbitrage half that error away. But then it gets to be a pretty low-risk-adjusted return to do the last half.”
Asness: Painful three-year drawdowns protect value factors from being arbitraged away
“The famous value factor, that can kill your world for three years. That's a terrible thing to live through, a wonderful thing if you don't want a factor to be arbitraged away.”
Corre: Merger arbitrage requires a 90%+ hit rate unlike general investing
“The great thing about this business, and the hardest thing about this business, is a lot of folks who are in our industry, there are people who got nineties and plus on every single one of their tests. And in investing, fifties, 55, 60 is pretty good. Now in a…”
Carl Pei: Marketing is fundamentally an arbitrage opportunity
“So, but personally, I think marketing is arbitrage.”
Katayev: Founders Should Start with Arbitrage Before Scaling
“Historically, I've always started with arbitrage first, because once you figure out that there's an arbitrage in something, you could build and scale around that.”
Puri: Building bridges into specific regional markets creates major business arbitrage
“It would be really great arbitrage to do by the way, if you, instead of trying to compete in the same pond as everybody else, like, Go provide a really useful bridge into one specific market or one specific geography.”
Getty Trust's hedge fund portfolio focuses on relative value and arbitrage
“We tend to be more in relative value and arbitrage type strategies. The beta is down around a .3. So it's not a big, heavy equity presence there. We don't do much in macro. The binary bets of up or down are less appealing to us.”