Details of track
To fellow PMs: what exactly do you show platforms in your track? Monthly returns and what else? Is a one pager enough?
thanks
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Based on the most helpful WSO content, when presenting your track record to a platform as a portfolio manager, you should consider including more than just monthly returns. Here's a breakdown of what you might want to showcase:
Monthly Returns: Clearly, this is a starting point. It shows the performance of your investments over time.
Strategy Description: Outline your investment strategy and how it differentiates from others. This could include your investment philosophy, the sectors you specialize in, and your approach to selecting investments.
Risk Management: Detail how you manage risk, including the use of leverage, volatility control, and any measures you take to limit drawdowns.
Sharpe Ratio or Other Risk-Adjusted Return Metrics: These provide insight into how much excess return you're generating for the risk taken.
Assets Under Management (AUM): Indicate the size of the assets you've been managing, as this can affect the scalability of your strategy.
Historical Performance Benchmarks: Compare your performance against relevant benchmarks to show your edge over the market or peers.
Liquidity of Investments: Especially important for platforms that use leverage and have strict risk limits, show that your investments can be liquidated without significant market impact.
Qualitative Factors: Include any qualitative factors that might be relevant, such as your experience, team structure, or operational setup.
One-Pager: While a one-pager can be a concise way to present your track record, it may not be sufficient to cover all the details that a platform would be interested in. It's often used as an initial introduction, but be prepared to provide a more detailed presentation or dossier upon request.
Remember, the goal is to demonstrate that you have a robust, repeatable process that can be scaled up and that you can manage the additional capital effectively without compromising your strategy's integrity or performance.
Sources: Track Record in Real Estate, How to build HF track record that is worth anything?, Don't Throw Away Your Shot - Networking with Senior Professionals as an MBA, Want to build a startup & raise some money? Part II, So I heard You Want to Start Trading?
Bump
If you're applying to a MM, forget about monthly, has to be daily.
Net and gross exposures also a must-have.
What about sharpe or anything else? Fine to derive by yourself?
not in equities, monthly fine.
Do you have any insight on primary strategies at a MM platform? Seems like they flip new issues (IPOs, Follow-Ons, Block Trades). But if markets are quiet wrt new primary issues, what do you do?
I know at least a couple of the main MMs don't really have primary strategies pods.. they might allow each sector-specific pod to play IPOs or secondaries within their sectors of expertise, but they don't really allow pods that are solely focused on capital markets.
There might be exceptions out there, but that's what I've seen at the places I've worked at.
only small books as part of larger pods. but its a crowded, cyclical strategy with little alpha.
This is for FICC. Typically I use a HH and am willing to send them a daily P&L, so they can see vol/drawdown patterns. HH can then covey to the platforms in question. When I speak with the actual platform directly the main focus is how vol is utilized and how to build a book over time.
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