"Fund Structure Arbitrage": The Small Fund Advantage

From "Quantivity" blog, a good concept to think about:

"What advantages do sophisticated tech-savvy quantitative traders, managing their own money (whether retail or prop), have over funds?

Understanding this question naturally leads to the concept of fund structure arbitrage, which refers to potential profit earned by exploiting idiosyncrasies arising from the organizational and regulatory constraints imposed on institutional funds."

One organizational constraint on institutional funds is that, for reasons of pedigree, they are all hiring basically the same type of person.

They also can't buy or sell anything that's too small. And they pretty much always have to be fully invested.