Macro pods vs L/S pods
Hi all had a quick few question that would be great to understand
1) I’ve read that a “good return for a L/S pod is c.3% which on a large book say 1bn is c. $6m payout for the team / c.$4m for the PM. Is this return target / p&l target the same for macro pods?
Somebody running a 1bn book at a MMHF would likely be MD/Partner level at one of the big banks so would probably be clearing $4m annually anyway so why do macro traders make the move?
would appreciate some clarity
thanks
Interned at one of the big MMs for L/S and made an effort to chat with macro guys. Seems the returns they were targetting was v different to the equities pods (many team handbooks quoted an aim of MSD - HSD with scaling the book to $1bn+)
also when I hear about PMs being given 8 figure guarantees it’s more often than not some macro pm
Most MDs at banks don’t clear anywhere near 4m buddy
Macro and fixed income RV pods can clear 15-20% or even higher in a very good year. Many FI pods were up 20+% last year. The flip side is a lot of macro pods are flat this year and at least a handful blew out back in March.
There aren’t many MD roles at banks that are similar to running $1bln macro book at a MM so it just doesn’t make much sense as a comparison. Also the comp isn’t $4mm for your average MD. And the upside (which si what these people want to bet on) is higher at a HF (but so is the downside).
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Pretty sure TikTok day traders average 9 figure paydays with outlier 10 figures - should go for that instead
Please stop, this can’t be serious.
Surprisingly hes not wrong. 2022 did indeed see average pod PnL of around 50mm to huge PnL of 400mm+ for discretionary PM's at the shop i am at. (Macro pod shop)
Does anyone know how agency MBS seats compare as far as profit targets and book sizes?
Does anyone know how agency MBS seats compare as far as profit targets and book sizes?
Does anyone know how agency MBS seats compare as far as profit targets and book sizes?
Mortgages are represented at most if not all of the MM platforms. Book sizes tend to be fairly large as the product isn't as liquid as some other FI RV structures. A lot of the bigger macro traders came from the mortgage world.
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