What's the sweet spot wrt risk model?
At LO currently. My impression is there's a spectrum of risk model tightness / volatility tolerance / factor awareness that goes from tiger style funds on one end, to funds like holocene / candlestick / viking / jain in the middle, to the MMs on the other end. I'm wondering if people think there's a "right" spot to be on this spectrum? Or is it more so the case that there's potential to generate alpha across this spectrum, and these funds are just playing different games?
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