Who is making money at MM in 2020

Subscribe

With most MM platforms handily outperforming the market and other HFS posting double digit returns in 1H 2020, I’m curious where the bulk of the profits are coming from.

There was an FT article that reported that Citadel Global Equities (their original stock picking unit) was down 6% YTD and their Fixed Income unit up 9% YTD. Other chatter is that quant generally has been a laggard so far this year at MM.

Anyone please share if you know sub strategy level performance. From the sound of it majority of profits have been coming from stock picking units

Comments (18)

 
  • Analyst 3+ in HF - Other
Jul 4, 2020 - 11:18pm

Does that mean fixed income recovered completely from the lows in March and became a strong net positive at most shops? That’s interesting because I heard LMR is still down YTD and they are mostly fixed income - but could be because they took gross down before the fed saved the day

Apparently Baly is driven by mostly consumer and healthcare. Last I heard their macro hasn’t been doing well and the head of macro in London left

 
Most Helpful
Jul 5, 2020 - 12:00am

LMR is a special case. I know they shut down a smaller fund, was not aware everything is down.

LMR basically only does futures basis which blew up in March. If they are down, they were too big and stopped out on risk. Those who were too levered are in trouble, those who could hold on are alright, and anyone who could add is killing it - Citadel FI lost like 400mm on like 3bn AUM in March but raised 1bn quickly for long end basis at the depths, so that bailed them out. Draghis son works at LMR so conspiracy theory that they are doing poorly with the madame.

 
  • Analyst 3+ in HF - Other
Jul 4, 2020 - 11:30pm

Fair point - I thought that the majority of risk was deployed to equities (70% or more). Certainly that’s the case at P72 and BAM. Thought it was true at Citadel as well. Not sure about MLP

Wasn’t sure if huge years in FICC could actually drive 10+% first half returns

 
  • Analyst 3+ in HF - Other
Jul 19, 2020 - 12:51pm

I've heard this as well from sources and that they are on track for a good year. Tbh seems completely inconsistent with their head leaving, march performance numbers, overall p72 performance numbers, and the fact that multiple teams were cut but who knows.

 
Jul 25, 2020 - 11:10am
Start Discussion

Total Avg Compensation

September 2020 Hedge Fund

  • Vice President (18) $520
  • Director/MD (10) $359
  • Portfolio Manager (7) $297
  • 3rd+ Year Associate (18) $269
  • 2nd Year Associate (25) $242
  • Engineer/Quant (45) $238
  • 1st Year Associate (58) $189
  • Analysts (175) $167
  • Intern/Summer Associate (12) $134
  • Junior Trader (5) $102
  • Intern/Summer Analyst (183) $80

Leaderboard See all

1
Jamoldo's picture
Jamoldo
98.3
2
LonLonMilk's picture
LonLonMilk
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.8
5
Addinator's picture
Addinator
97.6
6
Edifice's picture
Edifice
97.6
7
redever's picture
redever
97.6
8
frgna's picture
frgna
97.5
9
NuckFuts's picture
NuckFuts
97.5
10
bolo up's picture
bolo up
97.4