The average pod shop excluding Citadel which gained from Sit Awareness was up only 4% in first 9 months. Baly flat, Verition +3%, Walleye flat, ExodusPoint +4%, Schonfeld +6%.

And pass throughs keep going up. Lot of hiring of even teams that are well below high watermarks starting at zero at new firm.

Many big pod shops are 10-15% gross returns and almost zero net.

And this week will add to this pain. Crowded unwind.

When will allocators start to push back? https://rupakghose.substack.com/p/peak-pod-shop-part-2?utm_source=app-post-stats-page&r=1qelrn&utm_medium=ios

Found this very interesting post from 8 years ago: https://www.reddit.com/r/FinancialCareers/comments/bnqwb4/entry_level_salary_at_two_sigma/

One user said "I've seen offers for Citadel with 150k base, 150k signing bonus and minimum 100k bonus which translates to 400k total comp the first year which is insane". That is, in 2018, crazy NG package from citadel is 400K. Nowadays, the same crazy NG citadel package would be north of a million. If we use this as a baseline, it looks like quant has seen wage growth of ~15% annually whereas the national average wage growth was just 4.8% annually, inflation over the same period is 3.7% annually, and nominal GDP growth was 5.8% per year.

So quants nowadays are about 10% richer than they were 8 years ago. Where is that larger share of the pie coming from, and do you expect this trend to continue over the next decade?

I have a calculated Sharpe Ratios from different successive periods.

How to calculate SR for the whole period from them?