Confused on all the HF fee jargon
Have used AI to look up a lot of this stuff but not entirely sure I’m getting accurate info so wondering if anyone is kind enough to explain this to me slowly:
HWM = is this a high point in YTD return? And you need to hit it to charge mgmt and performance fees?
How does dispersion and factor neutrality work? Seems like MMs pride themselves on metrics around this stuff - are they doing some kind of PCA on all the pods’ trades to find correlatedness and penalize overlaps?
How is center book different from the individual pods? Is it just for the purpose of netting trades to reduce transaction fees?
How exactly does a carve work? Is it a separate book from the PM/team? If so isn’t that a separate pod? If your PM makes bad trades but your carve performs better are they netted against each other? And is this the same as a sleeve?
Sorry for silly Q’s and TIA
