Brett Harrison: belief

Transcript context

…You would assume that efficient market hypothesis would say that if people know that Tesla's stock price would irrationally climb whence including the S&P 500, then people would short it and then there should be no impact from this irrelevant information. Why isn't that the case? It probably mostly is. I think that sometimes there can be liquidity differences that cause at least temporary dislocations and stocks. The simplest example is like you have an ADR like an American Depository receipt that's sort of expunging for some underlying foreign stock and these two things should be like almost the same value at all times, like net of currency conversion and conversion ratios. But if one of the markets is highly illiquid or difficult to access, then there's going to be dislocations in price. And that's like the job of the Jane Streets, the world to kind of arbitrage away the price over time and so long run you wouldn't expect these things to be dislocated for that long. So I'm sure there are people who are understanding the fundamentals of individual names in the S P 500 and when there's like American News and the entire S and P falls, they are maybe buying S and P and selling individual names and expecting that relative value spread to come in over time. Speaking of by the way, these firms, you don't have to tell me specifics, but how similar are the strategies for market making or trading that Jean Street versus Citadelo and these firms, is it the same sorts of strategies or are they pretty different?…

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