Us & Them

In 2011, I presented my view on high frequency traders (HFTs) at Burgundy’s annual Client Day. I had been unable to obtain very much information in early 2011 on who the HFT guys were and what exactly they were doing, so at the time I felt uncomfortable issuing the speech as an edition of The View from Burgundy. When I read it today, I see that I was quite naive about the game that was being played. I only had a partial idea of what was going on both from the standpoint of strategies and hardware, though I don’t believe my conclusions were wrong.

Fortunately, Steve Malcolm (Burgundy’s head trader) was on top of this and we were early adopters of the algorithms that prevent us from being victimized by HFTs.

To read my 2011 Client Day speech, follow this link.


 

This post is presented for illustrative and discussion purposes only. It is not intended to provide investment advice and does not consider unique objectives, constraints or financial needs. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Select securities may be used as examples to illustrate Burgundy’s investment philosophy. Burgundy funds or portfolios may or may not hold such securities for the whole demonstrated period. Investors are advised that their investments are not guaranteed, their values change frequently and past performance may not be repeated. This post is not intended as an offer to invest in any investment strategy presented by Burgundy. The information contained in this post is the opinion of Burgundy Asset Management and/or its employees as of the date of the post and is subject to change without notice. Please refer to the Legal section of this website for additional information.

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