Ratio of hedge funds hiring traders vs Outsourcing to Execution Shops?
Like the title says - trying to understand the relationship btw many HFs and execution traders.
More specifically:
1) Typically what strategies and what AUM scales require HFs to hire separate traders vs. handing off to execution shops? (small L/S equity shops probably don't need traders but if you're a mega-fund AM than you do... but what's the typical AUM size?)
2) Are there other specific reasons why a fund would hire their own traders vs. outsourcing to execution shops?
3) Do funds hire their own traders while also giving orders to execution shops? Like internal traders figuring out what to do with the algo wheel kinda deal that brokerages offer?
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