Could someone who has experience working at a L/S fund clearly explain how hedge funds observe the following risk limits:
What is the difference between market-neutral, beta-neutral, and having some X% of "net exposure"?
What is the difference between being factor-neutral and factor-aware?
Why do the large MMs target only a few % points ofwith "highly levered money"?
What does being paid on drawdown mean?
Would greatly appreciate any insight anyone can share.