if Ms Hathaway is in the news, Warren Buffett’s Berkshire Hathaway stock jumps too.
Monday, March 28, 2011
The paradox of efficiency - Robot trading
High Frequency Trading strategies which use robots to trade is the result of a process of financial development and its quest for efficiency. But we begin to see the limits of this development which lead sometimes to contradictions, such as the "Hathaway effect”. The theory is still to be proven, but the bluntly put (from the FT):