ex-MetaUnRatito
What's a good year in terms of returns for a trading shop?
I've been in the space for a couple years, and how trading shops define a good year. Historically, it seems these shops perform below the index, so going by that 10% or above would seem to be "good" returns.
If uncorrelated to markets, look for double digits. Doing slightly better than the reference index would be ideal but not required. A rolling window 3 year return ~index along with a distinguishing sharpe is good for some strategies.
aren't most shops' central strategies market neutral (theoretically, at least, but maybe not as much so in practice)?
Would be a lower return strategy if so!