Equity long/short bloodbath yesterday a combination of three factors — 1. Continued squeezes on widely held shorts 2. Heavy degrossing across the street, pressuring both longs and shorts, 3. Market down when l/s has been running a cycle high net exposure
If I were a quant emn pm (I’m not) I would be heavily limiting my exposure to short interest factor and probably momentum and size as well, as well as tightly capping individual position size. Good risk control may get you through this.