With HFT and quant fund firms like Getco, Knight, and RGM, are these businesses starting to die out? WACC killing them?

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(Last Updated On: May 14, 2013)

With HFT and quant fund firms like Getco, Knight, and RGM, are these businesses starting to die out? WACC killing them?

From someone living in China sent me various reports including Getco

‘Getco earned $16.2 million last year, about 10% of its 2011 total and down from a peak of $430 million in 2008, when the financial crisis sent markets swinging and created opportunities for market-makers to trade profitably.’

From Dow Jones. He stated it could be HFT opr they used a low risk trading strategy. It was also mentioned:

http://www.streetinsider.com/Trader+Talk/Heavily+Shorted+Stocks+Squeeze+Higher+on+Tepper+Blessing/8336314.html?si_client=intbro

It was also blamed there is low entry barrier with also WACC as well because of lower profits.

http://www.investopedia.com/terms/w/wacc.asp

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