After suffering for a few months with the distractions from the beehive of activity at the house, Vivian made me lease an office. Moving to the second floor of a small office building, I bought computers and hired more people. I developed printed tables for trading each hedge. These tables listed the prices of the stock versus the convertible needed to achieve our target return. Besides the new hedges we wanted to add, the tables told us how to adjust existing positions that needed the hedge ratio changed (so-called dynamic hedging) because the stock price had moved or that should be closed
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Why didn’t people work for him, steal his ideas/formulae, and replicate? Seems big business risk. Wonder if he had means of keeping secret sauce secret from others. And I guess for a long time he could do all this himself. At what point did he need to disclose secrets to continue to scale?
Later he explains he just paid them a lot of money.
