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My lukewarm take is that different pod shops will handle this differently, some will be more on top of correlations, tail exposures and factor risk than others. Citadel does seem to be genuinely quite good at it for example, Point72 less so, Balyasny was not that good at all
My spicy take is that I would trust Citadel's risk management/quant team's opinion of how to manage their factor exposure much more than I would trust a random guy who works at a bank.
