MM HF Questions
Have been reading about MM HFs / pod shops (Citadel, Millennium, P72, etc.) and have a few (basic) questions - can anyone enlighten me?
- When a PM says "I manage $xm / $xbn", is that number the unlevered or levered amount of capital?
- Same thing at the fund level, when people say Citadel has $60bn AUM, is that excluding leverage?
- Do pods get paid their 15-20% on the levered or unlevered net P&L? Would assume it's the unlevered one (why should you get paid for leverage?...)
- What is GMV?
Thanks!
You can Google what GMV is.
PMs quote levered AUM. You get paid on % returns of levered returns (otherwise why would you take on leverage??)
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