Are you making money these days?
Markets have been quite volatile lately and several friends in pod shops blew up in the past few months. I cover a macro sensitive space and trade across the cap stack in a multi-strat fund. I have been in the industry for 3 years and felt myself losing my bearings in the last few months. Is it just me feeling the market is a bit broken lately? What do you do when you lose your conviction (when nothing works)? How do you navigate the markets when the macro backdrop is leaning so binary?
I don't know what strategy you are running but don't get overborne by emotions, stay in the zone. Take a step back and think about what you are trying to achieve and what is driving markets. It is harder to perform today because markets are going sideways. A great investor can hold sway over his caprices.
It's a very volatile environment and things change daily, so it is reasonable you feel like you are wanting conviction. It's harder to make money in this environment but you have a mandate to run and you can't just be sitting in cash. The way I see it, your stress comes from you having to take action when you would prefer to sit it out. To not have a conviction is also a conviction in a tumultuous environment. So perhaps if you have to produce ideas and take calls, maybe you can focus on ideas that would limit your downside rather than give you a massive upside? Now it's pretty much the game of who can avoid blowing up.
Aren't pods (as an industry) long vol? Meaning the more vol, the more alpha there is to be made? Genuinely curious
i think the mechanism is that you’re short rates, which tends to have the symptom of elevated vol
You are paid to make money in good and bad markets. More volatility means more opportunities to buy or short dislocations. If you can’t do that, and complain instead of embrace “weird moves”, you don’t deserve the seat
damn, harsh but respect that 100% honesty
Did way better this past month than the first 3 months of the year.
seems like people having somewhat of a tough time, especially over past month. Lots of unwindy behavior in april
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