Pod shops' neurotic approach to factor exposure and tight stop-losses stems from having too many PMs and worrying about them gaming the system (riding trendy beta factors or taking oversized risks), forcing them to use rigid rule-based constraints because they don't understand what their individual PMs actually do.
causalpending
Speaker
DavidEvidence Quote
“they have too many guys and so they're neurotic about risk both factor- wise... they don't understand actually what their people even do. It's almost like they have a black box”
Source
This Ex-Poker Pro Built a Hedge Fund by Betting Against Beta – David Orr on Asymmetric Bets— Odds on OpenCreated: 8/12/2026, 6:42:53 PM
My Notes
Loading notes...