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How to Increase Global Wealth Inequality for Fun and Profit

General Economics 2018-11-14 v1 Economics Trading and Market Microstructure

Abstract

We point out a simple equities trading strategy that allows a sufficiently large, market-neutral, quantitative hedge fund to achieve outsized returns while simultaneously contributing significantly to increasing global wealth inequality. Overnight and intraday return distributions in major equity indices in the United States, Canada, France, Germany, and Japan suggest a few such firms have been implementing this strategy successfully for more than twenty-five years.

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Cite

@article{arxiv.1811.04994,
  title  = {How to Increase Global Wealth Inequality for Fun and Profit},
  author = {Bruce Knuteson},
  journal= {arXiv preprint arXiv:1811.04994},
  year   = {2018}
}

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5 pages