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anonq


Total Posts: 5
Joined: Aug 2018
 
Posted: 2018-08-10 16:50
HitmanH is right as far as Cubist, no real short term infrastructure but if I recall correctly they did have some people colocated, and if not colocated then latency was borderline absurd. Almost went there years ago and had some discussions with their tech guys, could barely get away with running what we have there.

The quantbot manager platform is for the less entrepreneurial or if one doesn't have the alpha/team to go it alone then a great option. So the huge advantage of being there is that costs are shared and data is cleaned and ready to go as is the system to trade through including hft infrastructure. Maybe most similar to WorldQuant.

Probably lower payouts than other multi-manager places but likely easier to get up and running with their tech platform. For example had been at Millennium years ago and they provided us with raw data but had to parse/clean it all and had our own trading infrastructure (pretty much only given some servers).

Usually it's people who are solo who go there cause otherwise would make sense to try and get funded directly by Schonfeld for example but then gotta directly bear all costs like compliance, data, and technology and it ain't cheap.

kuebiko


Total Posts: 14
Joined: May 2018
 
Posted: 2018-08-10 21:50
Cool, really appreciate the insight anonq. So how would you say the risk/drawdown tolerance compares at a quantbot/WQ versus a millennium/cubist? In other words, does quantbot put up with bigger DDs before cutting people/teams, since presumably they allocate less capital or ramp up more slowly?

anonq


Total Posts: 5
Joined: Aug 2018
 
Posted: 2018-08-11 19:16
cubist/quantbot maybe a little more patient but it's so situation specific so like is the fund in a drawdown making them more cagey, do they feel optimistic that you're on the right track but just in a historically large drawdown, or do they think you've lost your edge and the drawdown is just validation for them of that. So maybe the mean drawdown tolerance at one firm is larger than others but at the individual level I don't think it matters as much.

I would likely still go with the best payout structure/tech platform that allows for success. Usually do have contractual drawdown limits but tend to get ignored on the funds side when they want to cut size, and if one does try to enforce the contract more likely to lose goodwill so definitely a trade off there.
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