Trending Assets
Top investors this month
Trending Assets
Top investors this month
Idiosyncratic Risk Only
So found this interesting read where Risk.net wrote a piece on how Citadel keeps beta returns at bay. Made me curious about looking some stuff up over the weekend.
For those that wanted a more humourous summary, here's the laydown written in style for regards:
Let me tell ya about our lord and savior Citadel, who had a stellar year while most of us probably lost our tendies 🚀. Their equity fund soared 21% while the S&P 500 dropped 20% - these guys are playing 4D chess, and we're still figuring out checkers. Citadel's got no time for beta or factor themes; they're all about those sweet, sweet idiosyncratic winners and losers 🎯.
Their secret sauce ain't sexy, but it's all about risk management and high-tech magic ✨. They've got floor-to-ceiling touchscreens that make Tony Stark jealous, and they're so dedicated to stress-testing that it's almost creepy 👀.
Wanna know what makes them tick? They give their PMs a straitjacket of risk parameters, but still want them to flex their decision-making muscles 💪. Oh, and they're always prepared for whatever the market throws at them - like the Russia-Ukraine conflict 🌍.
So, while Citadel keeps crushing it with their ultra-disciplined, data-driven approach, we'll be here YOLOing on FDs and praying for the next meme stock to take us to the moon 🌕.
Too bad in the recent recession, all of my long plays that worked out were just going long oil.
Risk.net
Hedge fund of the year: Citadel - Risk.net
Risk Awards 2023: “Intense” risk management produced returns that appear “almost impossible”
Already have an account?