What are the differences between different MMs?
Hello, college student here. Very interested in the pod model but have a lot to learn. I'm mainly curious what the difference is between different podshops (big 4 but also others). As far as I know, they are large funds with hundreds of pods each running their own strategy dictated by the PM and have their own sleeve. What I'm curious about is the differences between these firms like C/M/P/B.
I was talking to a connection of mine at an HFT firm and asked if it works the same as MLP or C where each pod has a sleeve to trade, and he told me that "teams have individual capital allocations, and they trade independently. It is closer to millenium than citadel"
What could this mean? I was under the impression that all podshops are fundamentally the same with some certain nuances, but again I'm only in college and not very knowledgeable about this. Can someone please help me understand these differences / correct me? Thank you!
Fun fact— Deloitte, PwC, EY, KPMG,
used to be called the “Big 5!” But then Arthur Andersen went under. Would say the major difference between each is the vibes!
As number of pods increase, does realized alpha go lower ?
Generally will say Deloitte is by far the most prestigious and KPMG is the least. That said KPMG does have a pretty good TAS team and you could lateral your way into IB after a few years.
lol what is going on
I have no clue🤣
Ctrl c + ctrl v brother
Nuances are mainly related to risk management and GMV rules.
Citadel -> We'll tell you what to do. This is the framework. We want you to get EPS right vs the street! Keep gross constant and make $!
Millenium -> Tell us your process for making $ and how much you'll make that way. Flex gross as you please but deliver on promised $!
P72 -> If you're proven we'll give you more flex to run it the way you want (within reasonable risk frameworks)
Baly - Mix of the above but with slight tilt to Citadel
Others - More tailored to individual PMs
Back in the days (say 10-15 years ago...) Citadel had technology advantage around their risk models and optimizers for dynamic position sizing. That delta has largely been narrowed as others have caught up.
finally a real answer lol... thank you!
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