The strategies of the big players influence the market. Understanding what strategies they use and why is the key to finding a structural edge in the market for small speculators like us.
What strategies hedge funds use:
Dedicated Short Bias
Equity Market Neutral
High Frequency Trading
What strategies mutual funds use
More money is allocated to value than growth. If you study mutual fund industry, most start out as growth funds but once size of assets increases they become value funds.
What Strategies pension funds use:
One should look for a structural edge in the market and not ephemeral edge. There are many traders who spend considerable time developing ephemeral edge. Structural edges are enduring and rooted in the behavior of the market and large players in the market.