Redleaf: Black-box funds rarely have proprietary secrets too complex or valuable to reveal
Andy Redleaf · Andy Redleaf - Evolution of Markets (Capital Allocators, EP.46) · Apr 2, 2018 · at 23:57
Andy Redleaf, founder of Whitebox Advisors, discusses why he named his firm Whitebox as a critique of the secrecy claims made by quantitative black-box hedge funds.
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“And the thing about a Black, the Black Box, I always thought the Black Box firms, you're telling people, That either our system is so complicated, so detailed, so computationally intense, or what have you, that there's no point in opening it up, because it just wouldn't make any sense. And I don't think that's often the case. Or, on the contrary, it's so original, so elegant, so Simple but profound that to open it up would be to lose some incredibly valuable proprietary information, and you know, I don't think that's true either.”
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