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Hedge Fund Two Sigma Is Hit by Trading Scandal (wsj.com)
2 points by anonu on Oct 30, 2023 | hide | past | favorite | 1 comment



> became aware of Wu’s changes because they resulted in higher than expected correlations between some of the firm’s trading models.

So you net close to $300m more for investor funds. But you get dinged because you're effectively siphoning off alpha from the prop trading bucket.

So even though this was better for clients - it was worse for the owners.




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