If you guys want some inside baseball view. On GMV = Excl leverage...
sysls@systematicls
41 views
Nov 27, 2025
~1 min read
Advertisement
1
If you guys want some inside baseball view.
On GMV = Excl leverage effects.
It's entirely possible to create a portfolio where you have drawdown < 5% on GMV. Hundreds of PMs are doing exactly that.
In fact, it's entirely possible to have a portfolio where a 2.5% drawdown might warrant cutting some risk off the table, and a 5% on GMV drawdown is an absolute tail event.
You're expected to generate 2-4% returns on GMV.
On a $1.5bn book, you'll make ~$50mn PnL with 3% vol.
Why do I say this?
Because I want to give you guys some context on what is possible.
If you see public profiles with portfolios out there slinging stocks, and there's a 20% drawdown on GMV.
Hey, he's probably not THAT good.
He MIGHT have some alpha picking stocks, but you don't need to put him on a pedestal, because there are hundreds of guys who are playing at the highest levels of the game that you've never heard of who can BOTH pick stocks AND have portfolio management skills.
On GMV = Excl leverage effects.
It's entirely possible to create a portfolio where you have drawdown < 5% on GMV. Hundreds of PMs are doing exactly that.
In fact, it's entirely possible to have a portfolio where a 2.5% drawdown might warrant cutting some risk off the table, and a 5% on GMV drawdown is an absolute tail event.
You're expected to generate 2-4% returns on GMV.
On a $1.5bn book, you'll make ~$50mn PnL with 3% vol.
Why do I say this?
Because I want to give you guys some context on what is possible.
If you see public profiles with portfolios out there slinging stocks, and there's a 20% drawdown on GMV.
Hey, he's probably not THAT good.
He MIGHT have some alpha picking stocks, but you don't need to put him on a pedestal, because there are hundreds of guys who are playing at the highest levels of the game that you've never heard of who can BOTH pick stocks AND have portfolio management skills.
2
The thing about this industry is that the Stephen Curries of this world could walk by you and you wouldn't bat an eye.
It's like people would be very careful to say that they play basketball at the highest levels of the league because its known what the highest levels of the league plays like.
They see Michael Jordon and they KNOW they cant play like that.
This industry is so secretive that imaginations run amok at how the professionals actually play the game. I feel public perception of professional investing/trading is (AT BEST) probably at the equivalent of a high school basketball league.
You haven't even seen the 360 no scope half court slam dunk mate.
It's like people would be very careful to say that they play basketball at the highest levels of the league because its known what the highest levels of the league plays like.
They see Michael Jordon and they KNOW they cant play like that.
This industry is so secretive that imaginations run amok at how the professionals actually play the game. I feel public perception of professional investing/trading is (AT BEST) probably at the equivalent of a high school basketball league.
You haven't even seen the 360 no scope half court slam dunk mate.
3
