This is a good question! Some possible answers - 1. Infrastructure that is too expensive or too hard to build yourself (eg colocation, low latency data feeds, compute clusters, fpgas) 2. Data that is too expensive or simply impossible to buy (eg historical tick data)https://twitter.com/mobile_mm/status/1373427747901542402 …
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5. Track record. If you have ambitions to launch a fund, your current employer may help you with the set up, seed you and audit your track record for prospective investors. If you have been trading your PA all this is much harder.
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6. Ops and back office. If you work for a fund they probably provide you with IT and hardware support, a risk system, pnl tracking, maybe trade execution and position management (rolling futures, handling dividends, stock splits, delistings etc) which you do yourself otherwise.
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7. Market access. Some strategies require leverage and shorting, both of which are hard and expensive to access in a personal acct but easy and relatively cheap for a fund/prop shop with good broker relationships.
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End of conversation
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I think this is the answer. Give up your risk to someone else (client, investor, etc), and your personal Sortino rises to the sky. No other strategy improvement could do it. (You don't even need to have a really good strategy actually. Just good enough to sell it to someone.)
Thanks. Twitter will use this to make your timeline better. UndoUndo
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