Reuters on Jane Street: "We generally worry most about sharp drawdowns, and buy puts that would help in those scenarios. The losses in AI stocks were relatively spread out throughout the month, so those short-term hedges provided little help," the note added."
"Jane Street's capital structure allows the firm to take larger positions when providing liquidity and hold such positions through periods when such risks pay off."
"Jane Street said it closed a significant portion of risk in the specific areas where the firm lost money in July, while also having pulled back on risk-taking in other strategies."