If your defense against the outsourcing is that you have better data and more powerful computers than most other people, you open yourself up to a second problem, which is that a purely number-driven decision process is easy to imitate. Thus, if you are a “quant hedge fund” and build an elaborate quantitative model to find the best stocks to buy and sell, all I would need to do is be able to see the stocks you buy and sell, and with a powerful enough computer of my own, I should be able to replicate your strategy.
