when things started melting down in 2008, it was largely attributed to the fact that hedge funds basically all had the same strategies in their book. When one started liquidating, many started losing value and liquidating in a disastrous feedback loop.
There are plenty of strategies that are very robust, and in hedge-fund land, its not uncommon that many players are playing very similar hands.
In fact, there even exist strategies that get better as more people run them.
when things started melting down in 2008, it was largely attributed to the fact that hedge funds basically all had the same strategies in their book. When one started liquidating, many started losing value and liquidating in a disastrous feedback loop.
There are plenty of strategies that are very robust, and in hedge-fund land, its not uncommon that many players are playing very similar hands.
In fact, there even exist strategies that get better as more people run them.