In the case of London's Fund has so far not much more hooked. The company jumps on trends like the good surfers on the wave, is not something she wanted to invent ingenious ideas constantly new methods of money making. Of the 200 employees, 100 scientists, just imagine, there are mathematicians, statisticians, nuclear physicists, biochemists, whose primary task is to make the markets is predictable and calculable human weaknesses. This is the credo of this force, in her the best graduates from Oxford, Cambridge, Harvard, Stanford are assembled; economy, the least studied.
Analyzing human behavior and takes the man as he is or how it imagines: impatient undisciplined, is subjective, greedy, arrogant and always reality-rather, just as it in internal brochures of the company. On knowledge and understanding of these properties ultimately found success or failure, and the best hedge funds manage to translate this as in London, in the binary language of computers.
You have to take leave of the imagination, trained at the old greats like George Soros or Warren Buffett, that investors are master thinkers with wide suspenders, to assess the world situation with a sharp mind and then calmly take their decisions. I bowled that George Soros, the British pound in isolation from the European currency composite, was always a legend. Soros has also swam in a large swarm of decision-makers, whose collective actions were only for the most "market event".
Today's hedge fund managers do not sit together and discuss whether Greek savings plans are appropriate, whether Thailand's government may hold, or whether or not Angela Merkel says. They rather feed their machines with new data, material in a computer whose hard drives are already full to the brim with numbers anyway, and they - the engine, based on mathematical models - from spit out, what to do in this or that situation best .
Everything is fed to which economic statistics have to be, preferably on a back to the beginning of mankind. The computers are of this London hedge fund, even if that sounds like a joke, with bank data from the 17 Century fed with budget figures of the Florentine Republic during the time of the Renaissance, with market statistics from war and crisis. How British government bonds during the French Revolution have developed? What influence did the Crimean War? What phases had the boom before the First World War? As the crash ran after the second Gulf War?
From this incredible wealth of data, an unimaginable mess of numbers, can be, which is the hope, patterns, recurring patterns, probabilities of future developments, structures of the human herd instinct be derived. Compile hope and fear, lust and caution in numbers. The fact that European leaders take decisions that they put together rescue packages for Greece, the machines, so to speak, really care.
The hedge fund handles its business to 95 percent from fully automated, computer analysis of curves and courses, global prices and interest rates, and in certain situations makes it easy to click - and the machine bought or sold positions, no matter what politicians decide straight or editorialists write . The people are in this system only there to keep the computers up to date to maintain their software to adjust the algorithms to eliminate bugs. They invest millions every year in the in-house research, half of the current budget goes, it always, as in the Audi's slogan is, to lead through technology.
I still can't believe these kids aren't in elementary school.
