Of the people who think hard about finance, there are the academics and the practitioners. The practitioners work at hedge funds, have PhDs in maths, and are very wealthy. When they find an anomaly in the market they tell absolutely nobody about it. And they trade it.  When the academics find an anomaly, they publish a paper about it in a scientific journal. The currency of academia is journal citations. Though the strategy of lots of hedge funds is to bet individual stocks, the most sophisticated quant funds operate on a different plane. They look at each security in terms…

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