The Math That Explains How Multi-Strategy Hedge Funds Make Money
Odd Lots7 Loka 2024

The Math That Explains How Multi-Strategy Hedge Funds Make Money

Multi-strategy hedge funds are still all the rage on Wall Street, but what does it actually mean to be a pod shop and how are they being set up? On this episode, we speak with Dan Morillo, co-founder of Freestone Grove Partners and formerly a partner and head of equity quantitative research at Citadel (one of the most successful multi-strats out there.) While lots of people tend to talk about multi-strategy hedge funds as one big blob, he argues that there are important differences in their business models. We talk about how he identifies top portfolio managers, managing crowding risk, and the math behind compensation, scale and returns.

Previously:
How Hedge Funds Discover the Next Superstar Trader
How to Succeed at Multi-Strategy Hedge Funds

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