Why are there way more macro funds in London than the US?
Why are there way more macro funds in London than the US? Whenever I read about star performers in the macro space, they happen to be London-based managers.
Trending Content
| +27 | Fastes PM progression ever seen? | 31 | 23h | |
| +21 | Recommend Pass for MM HF Case Study | 6 | 40m | |
| +20 | Track Record Expectation For PM's | 29 | 2d | |
| +17 | How extroverted is the junior MMHF job? | 5 | 4d | |
| +17 | Why don't MMs do any activism? | 11 | 20h | |
| +16 | HF perspective on Google (Alphabet) | 5 | 4d | |
| +13 | Credit Pods | 6 | 3h | |
| +12 | Point72 Academy Case Study | 11 | 8h | |
| +12 | Are you making money these days? | 9 | 2s | |
| +11 | Stephen Moyer- Distressed debt analysis | 5 | 3d |
Career Resources
If this is actually true, it's probably due to London's fortuitous location and convenient time zone...
Ditto on Martinghoul's time zone point. Also, what can begin as random differentials can feed path dependence, i.e. I know people who have opted for London over NYC/CT for macro funds, just by virtue of the City having more access to macro talent and colleagues nearby. Though, I should say that I don't think the difference is that significant in prominence of macro funds...
There are lots of trading opportunities in the macro products (Rates, FX) at 2-3am NewYork Time that disappear by 6-7am. So either you need to wake up at 2am in NY, or live in London and wakeup at 7am.
Why is the open in Europe so important for Rates and FX?
its not a very sexy answer....but...its because that's when the Europe traders/Fund managers wake up and get to work. You generally don't make trading decisions while you are sleeping. Volume picks up at the Europe open, and then volume picks up again at the NY open. This is just because these are the times that large traders get to work.
So whenever he first few guys make some large traders, some HFT algos will piggy back off those flows, trying to follow the volume. If the market is not positioned in a way that makes the move self-fulfilling, then the market mean reverts until NY comes in...and the process starts all over again.
Repellat eum ab qui consequuntur omnis ut. Autem harum facilis laborum amet accusamus. Rerum ea at unde sapiente voluptatibus. Blanditiis accusamus blanditiis repellendus rem exercitationem et esse. Laborum sed illum provident necessitatibus quas non. Est consequatur alias iste expedita autem at.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...