"Arbs" on stuff that big desks don't touch because of capacity (small mergers for example, you lever up on 2-3 small merger arbs per year and you are almost there);
DEX to liquidity pool latency arbs for shitcoins if you want a crypto example;
Edit: The other option is that if you are a trader in "special" markets (the best example is biotech/medstocks) where domain knowledge really matters being 4 sharpe is basically 1 good trade a year, and at 5mio USD AUM you are always at capacity.
I wonder why people always assume that the strategy would be algorithmic or systematic. How about global macro, long/short equity, or even plain long only done well ? Actually studying markets and assets fundamentally, and finding asymmetric bets ? There are plenty of people that have done that successfully over really long periods of time, I doubt markets are perfectly efficient just because some academics claim so, especially for bets with strong convexity.
mamonster|5 months ago
"Arbs" on stuff that big desks don't touch because of capacity (small mergers for example, you lever up on 2-3 small merger arbs per year and you are almost there);
DEX to liquidity pool latency arbs for shitcoins if you want a crypto example;
Pure arbs (One of my friends who admittedly is not satisfied with 1mio USD comp did this trade: https://notion.moontowermeta.com/financial-hacking-etf-vs-ne... ).
Edit: The other option is that if you are a trader in "special" markets (the best example is biotech/medstocks) where domain knowledge really matters being 4 sharpe is basically 1 good trade a year, and at 5mio USD AUM you are always at capacity.
bionsystem|5 months ago