can someone smarter than me explain how the big pod shop model (Millennium, Citadel etc.) generally works pretty well? The whole idea of yanking the portfolio after some non-outlier drawdown in a relatively short period of time shouldn't really add any value imo
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4. you are less concerned with losing a few million $ on a large number of pods, what worries you is missing a pod that can generate hundreds of millions per year (so as well as aggressively cutting losers, you aggressively scale winners to capacity)
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5. Depending on how smart/centralised you are you can try to juice your returns by hedging common risk (eg equity factors) and applying leverage, afaik Citadel does this aggressively, Millennium bit so much
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