Biggest differences between market neutral and MM?
Trying to understand how a market neutral fund's strategy would be different from the MM pod groups.
I have an interview with a market neutral fund but have heard they have a longer time horizon than most. I assumed most of the investment style at pods is rank ordering / relative trades with maybe a handful of longer bets, but still mostly pair trades and focusing on nailing the quarters + more active trading style. How would a market neutral fund with longer duration differ from the pod groups? I guess for the purpose of interviews it may not matter that much though (just don't want to pitch the wrong ideas)
If helpful from what I have seen, maybe some pods let you run net long a bit if you want
What's similar is that you have tight risk limits and use of leverage.
What's different is that in one you try to be market neutral (by taking a view on single sectors/names vs others) while the other tends to be more directional & exposed to market fluctuations. Although as said before, tight risk limits don't usually allow for that much of a fluctuation in your PnL.
Et possimus natus fugiat et. Corporis voluptatem dolorum repellendus beatae et aliquam tempore. Laborum rerum nesciunt rerum eum sed ipsam. Non cumque odit nihil eius. Autem officia culpa odit sint ducimus dicta praesentium.
Sed dignissimos maxime quas sit. Laborum aut recusandae eveniet cum molestias. Nisi rem vitae quae et vel. Ea consectetur numquam aperiam perspiciatis eligendi. Nemo id tempore dolorem voluptatibus explicabo.
Numquam eos fuga ut sed. Facilis quod maiores deserunt aspernatur occaecati. Rerum alias natus perspiciatis non et eius earum. Non et fugiat dolore consectetur facilis in et. Laudantium cupiditate numquam rem culpa est ut.
Temporibus enim neque reprehenderit atque. Ex dolorem quibusdam est quam. Molestiae dolor et explicabo. Sed repellat delectus voluptas sit ullam. Eligendi autem numquam officia rerum et unde consequatur quisquam. Asperiores rerum non non quia veniam molestiae.
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...