IDEAS home Printed from
   My bibliography  Save this paper

On the Problem of the Hedgeless Hedgefunds of Sleepy Hollow: An Evolutionary Stable Solution in an Open Letter to Kenneth Griffin


  • Funk, Matt


This discourse explores and illuminates a fundamental problem, the Achilles' heel, which dominates the hedgefund industry: namely, that hedgefunds no are not positioned to accomplish what they were designed to do: namely, hedge against catastrophic loss in the financial markets. Contemporary fund strategies where built upon random-walk, efficient market theories which are now well-known to be false, thus our present dilemma. This discourse tables the Evolutionary Stable Strategy, for prospective hedgefund investors which, essentially, follows the dominant strategy outlined by Smith in 1776. Our discourse also highlights the dimly recognized difference between internal and external financial shocks, as well as several key points regarding economic methodology.

Suggested Citation

  • Funk, Matt, 2009. "On the Problem of the Hedgeless Hedgefunds of Sleepy Hollow: An Evolutionary Stable Solution in an Open Letter to Kenneth Griffin," MPRA Paper 14487, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14487

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    More about this item


    hedgefunds; evolutionary stable strategy; problem of induction; kenneth griffin; george soros; karl popper; clive granger; adam smith; ted turner; catastrophic risk; external shocks; internal shocks; citadel investments; hawaii; rangelands; ranch economics; david hume;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:14487. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.