Hacker News new | past | comments | ask | show | jobs | submit login

Hedge funds (and anyone) can make money regardless of the direction the market moves, or even if the market doesn't move. So why would they do something risky, illegal, and difficult that has the potential for unbounded losses?



It's easier for a third part with only money to cause damage to apple (which will happen in a known time period) than to cause a buff.

(an industry player could cause positive effects, like a huge purchase of Apple into a new industry like enterprise/government, or vendor neutrality for public sector purchases, or Microsoft committing to OSX as a tier-1 OS, etc., but a hedge fund can't do that)


That's what they do:

Risk is their bread and butter. Difficulty - if it were easy, everyone would be doing it. Illegal - arguable but they're probably just good at not getting caught (and managing the risk of it). See eg. recent libor scandal.


Theoretically, the only way to make money on an efficient market is to have information others don't have. Manufacturing it would one (very desperate) way.

I agree that this would be too difficult to pull off (one worker spilling the beans would be enough).

But "can make money on the market" mean "might make money" not "will make money". Worth keeping in mind that hedge don't just get stream of money from the market just for being hedge funds. You need to get good information somehow.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: