If the phenomenon is “for real,” capitalizing on it can be an even tougher challenge. How much leverage should be used? How much cash can be tossed at the strategy before it vanishes into thin air? The deep thinkers at Renaissance considered all of these issues and more. “Our edge was quite small, but it’s like being the house player at a casino,” Patterson added. “You have a small edge on every bet, and you have to know how to handle that.”
