When i flip through job postings for trader positions the single most common strategy being sought after is high frequency stat arb traders. I was introduced to the strategy in more depth this summer but I am no means an expert on it.
The underlying investment thesis appears to be that 2 securities have a historical relationship over a given timeframe and they tend to revert to the mean. This strategy seems to have the same underlying principles as what LTCM used.
I thought margins in this area were already razor thin as many hedge funds already arb the market to death making these inefficiencies disappear however this is by far the most commonly sought after equityposition.
If anyone has any further information on it I would be interested in hearing more.