Jim Simons: Markets Are Not Much More Efficient Today, Anomalies Still Exist

In his recent interview on the Abel Lectures, Jim Simons said markets are not much more efficient today and anomalies still exist. Here’s an excerpt from the interview:

Simons: There are a number of quant funds, which have grown over the years, they compete with us.

They don’t see what we’re doing and we don’t see what they’re doing but… So I think the quant funds may have made the markets somewhat more efficient, I can’t be sure of that.

But of course the way you make money in this is find anomalies that… so there are some minor anomaly that has continued and it’s usually very small but it’s there.

And if you have enough in these anomalies you’ll build up something. But I don’t really think that the markets are very much more efficient.

You can watch the entire discussion here: