BBRG: Financial Crisis Killed Hedge-Fund Performance

The Financial Crisis Killed Hedge-Fund Performance The industry never came back from the “Great Reset,” the huge sell-off during the first quarter of 2009. Bloomberg, September 17, 2018     I mentioned last week I was perplexed by the idea that Hedge Funds, who as a group had generated reasonable (but expensive) out performance pre-crisis… Read More The post BBRG: Financial Crisis Killed Hedge-Fund Performance appeared first on The Big Picture.

MiB: Lee Cooperman of Omega Advisors

This week, on our Masters in Business radio podcast, we speak with Leon Cooperman of Omega Advisors. Cooperman studied for his MBA from Columbia University, where he became steeped in the methods of deep value investment. After earning his MBA, his began his career in the Investment Research department at Goldman Sachs in 1967. He stayed there for 22 years, eventually running… Read More The post MiB: Lee Cooperman of Omega Advisors appeared first on The Big Picture.

Paul Tudor Jones at GS

An interview with billionaire hedge fund manager and founder of Tudor Investment Corporation, Paul Tudor Jones. In this interview, Paul discusses his career in trading and his views on the market. Paul Also talks about his philanthropic efforts. Billionaire Paul Tudor Jones: Trading, Career and Philanthropy (2018)     Paul Tudor Jones favorite books The… Read More The post Paul Tudor Jones at GS appeared first on The Big Picture.

MIB: Jim Chanos on Having an Edge

This week, we speak with famed short seller Jim Chanos, founder and president of Kynikos Associates LP, the world’s largest exclusive short-selling investment firm. Chanos has identified — and sold short — many of the past 3 decades best-known corporate disasters. His celebrated short-sale of Enron shares was dubbed by Barron’s as “the market call… Read More The post MIB: Jim Chanos on Having an Edge appeared first on The Big Picture.

More on Performance Fees vs. Beta

Yesterday, I discussed changes in the fee structure of hedge funds. In researching for the column, I reached out to several different managers who employ a variation of straight up fees. Joel Greenblatt of Gotham Funds, Andrew Wellington of Lyrical Asset Management, and Eddy Elfenbein, who runs the AdvisorShares Focused Equity ETF (NYSE: CWS). I (of course!)… Read More The post More on Performance Fees vs. Beta appeared first on The Big Picture.

Paying Alpha Prices for Beta

A Hedge-Fund Fee Plan That Only Charges for Alpha The industry had been paid a fortune for underperformance. That’s changing. Bloomberg, May 9, 2018     One of my biggest criticisms of the hedge-fund industry has been the mismatch between fund performance and management fees. A traditional fee structure of “2 and 20” (a 2… Read More The post Paying Alpha Prices for Beta appeared first on The Big Picture.

Hedge Fund Expected Returns Are Fabricated Sales Tools

Hedge-Fund Mediocrity Is the Best Magic Trick Never have so many investors paid so much for such uninspiring returns. Bloomberg, February 15, 2018       Hedge funds have accumulated $3 trillion, with a substantial portion of it coming from public pensions. That these funds don’t deliver outperformance is almost beside the point. What they… Read More The post Hedge Fund Expected Returns Are Fabricated Sales Tools appeared first on The Big Picture.