 SusquehannaWilliam T Ziemba Chapter 12 in The Adventures of a Modern Renaissance Academic in Investing and Gambling, 2017, pp 129-131 from World Scientific Publishing Co. Pte. Ltd. Abstract: Beat the Racetrack attracted a lot of attention as it was purely based on mispricings. Because of this work, Jeff Yass, the main partner of Susquehanna in Philadelphia contacted me in 1987. Jeff was one of five partners, all about 28 years old who were friends at The State University of New York at Binghamton. They were betting racetrack pick 6’s, etc., successfully and moved to Philadelphia to start a firm market making on the Philadelphia stock exchange. This exchange is known as the home of bandits who nickel and dime on trades to generate fortunes. Jeff’s group were clever and hired young smart non-finance students from elite schools in the northeast and trained them to be market makers. They preferred students from philosophy, political science, etc., rather than finance graduates who might be corrupted by efficient market theory. The idea was to make those nickels and dimes and quarters by selling high at the offer and buying low at the bid in various markets. This was a good business… Keywords: Financial History; Risk Management; Investment Strategies; Mean Reversion; Risk Arbitrage; Management of Assets (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813148529_0012 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd. |
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