https://blinks.bloomberg.com/news/stories/S4YA7LT…
Citadel and Peers Face More Scrutiny as Pod Shop Risks Grow (1)
Discusses the crowding effect of pods and how they account for ~30% of total GMV, along with their issues on potential leverage risks + liquidity. Will also attach the Fundamental Edge guy's take from Twitter which I thought was fantastic.
If any of you have seen my posts I tend to be marginally more on the skeptical side of pods. Not that I don't have tremendous respect for these incredible businesses, but mostly on the idea that they've morphed the public mkt structure into a NT momentum/trend following style arena rather than focusing on core fundamentals X valuation. This article largely suggests valuation in the context of pods matters demonstrably less than MOMO / NT immediate earnings revisions.
Here's the X post for context:
https://twitter.com/FundamentEdge/status/17303682…
Happy to keep the dialogue open!
Couple factual errors in that twitter post. To begin with MMs have degrossed and eg new PMs are being given way less leverage than only 2 years ago.
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