Over the past few months, several well known hedge funds and banks have opened up job positions for prediction market traders I have talked about this before, but I expect prediction markets to be a core component of every market neutral fund sometime within the near future The reason is very simple > market neutral hedge funds strip down stocks into a number of factors > factors such as market beta or industry beta are evergreen, meaning they impact every stock > specific companies also have individual factors that drive the stock. for example, a massive factor for airline stocks might be the price of oil, since it is one of their largest cost line items > a hedge fund might go long airlines and long oil as a pair trade. this way, if oil price increases, you are hedged against any drawdown it causes in airlines > however, this model is largely imperfect, because oil itself can be impacted by numerous other variables, including geopolitics, supply curve, demand, and so on > in summary, this makes it incredibly hard for hedge funds to isolate factors and hedge their portfolios perfectly Prediction markets are the perfect solution for factor isolation, where you can take isolated bets on just specific events Very much expect this trend of hiring prediction market trader to continue