As I’m working away preparing for the Money:Tech conference early next year (and feel free to keep sending all those great ideas), I’ve been thinking a lot about the nature of technology as it’s used by Wall Street. Here is a factoid that jumped out at me yesterday, one having to do with the ratio of software developers to non-developers at a major quant fund versus a major software company:
- Oracle (56,000 empl.): 1 – 8 (one developer for every eight employees)
- Renaissance Technologies (178 empl.): 2 -3 (two developers for every three employees)
It’s not too much of a stretch to say that hedge funds are the new software companies. After all, they have more developers per capita than the latter, and they certainly generate more cash flow per capita.