Curious to know who's doing well and not doing well
Curious to know how funds (L/S, macro, etc.) are faring right now in this huge draw-down.
Are any teams firing analysts as we speak? any teams that have blown up yet?
Buuuuuuump.
I know who's doing well: all the long gamma desks at market makers
I know of a few vol arb guys who did pretty well in Feb
That's surprising. Most vol arb groups are usually selling vol. Quite a few of them blew up.
Yeah that was the general picture from what I saw too, some seemed to buck the trend though, I guess just through opportunistic long vol plays
Update: I’m hearing L/S funds are getting obliterated this month.
how? anen't they to overperform in bear mkts?
Some small-cap and mid-cap funds in the L/S equity space are now -30%+ on the year---they had too much long exposure in some these levered small and mid-caps which some of them are now down 60% on the year
which ones?
Credit shops all over the place, seen some good but those are from books running closer to neutral. Structured credit is harder to tell as cash structured products haven't seen a ton of volume so price discovery has been difficult and have been using the liquid securities/benchmarks as proxies which have sold off strong. I think marks will be very ugly in the CLO space once they get a grasp on marks, could see some junior tranches get taken out.
credit shops are doing well or not?
PE firms using this weakness to buy distressed assets are killing it
my banker friends have been inundated with calls from PE funds looking to buy, with billions and billions of cash on hand.
Warren Buffet will use his 120bln cash pile to buy the dip
Wait, are you saying that PE funds who've been waiting around for private deals are now making public investments in some of these bombed-out equities?
some are....they are bidding (low) for distressed debt...playing the capital structure game...all sorts of games you can play when you have cash, and your target is poor.
How can they be killing it when the market hasnt even bounced yet. They may have scooped up some assets that sold off hard Whether the trade worked out or not remains very much to be seen.
This. Going to see a lot companies with a need to raise equity in order to survive and sponsors are itching to put money to work since they are flush with cash
Seems to be more losers than winners
Winners: Macro , or if you can take big macro risks
Losers: Basis, Risk Parity, RV, Credit, Vol in general (as most buyside are short, if you are long then well done), L/S Equity
Unsure: CTA.. with vol blown up like this they tend to turn down signals so not sure if they got ko'ed
Not sure macro is a winner. They may be. Think a lot were long at highs. Depends how they flipped and traded vol
momentum traders are the big winners...
are momentum traders long or short equities in most of the speeds before the last two weeks?
there were long..and flipped short ES at 3200
you can see it on a chart ... 10am feb 25th CTA momentum funds selling hard
I heard all the long only guys are killing it.
Headline came across terminal this AM that Bridgewater is -20 on the year.
Anyone have news on Element? I am... hearing things
No news on element but have heard some macro shops have been rocked. Did you hear good or bad thing?
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