Hedge Fund large Trading Book
Is it true that big multi managers hedge funds portfolio managers who have very good return record are given big trading books to manage which size is 1-2 billion? Basically what is size large pod or trading book in big multi manager hedge fund?
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1-2 billion isn’t that large
Yes 1-2 billion is large. But i want to know that what is the range of large book size?
Largest are $3-4bn for the most part.
is this levered or unlevered? Also, when a HF lists their AUM, is that levered or unlevered? May be a stupid question but I’m new to the industry
Definitely this.
If we do some quick estimations. Take a large MM HF like Millennium with ~$50B AUM. Say they lever 2x for simplicity that is $100B distributed among ~200 or so portfolio managers. If everyone gets an equal share its around $500M for a book, but we all know they give the best PMs a larger book and newer PMs smaller. It's not a stretch to see that a large book can reach the $1-2bn range. And if you are looking for THE LARGEST $3-4bn for the most part would be reasonable.
It depends on the firm - e.g., Citadel gives more capital to the top performing PMs than P72
What is the size of big capital?
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