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.

Congratulations to Hovnanian, Blackstone: Judge Rules Fancy CDS Trade Allowed

A federal judge denied a hedge fund’s request to stall a debt exchange closing tonight, saying they had provided insufficient evidence of irreparable harm to them or the market. U.S. District Court Judge Laura Taylor Swain denied the preliminary injunction request by Solus Alternative Asset Management in its quest against hedge fund GSO Capital Partners and homebuilder […]

All-Time Hedge Fund Earners

I am fascinated by hedge funds for several reasons: first, I admire great talent, skill and expertise in whatever form it manifests itself. Excellence should never be ignored or lightly dismissed. These handful of alpha generators have created an enormous amount of wealth for their investors. To quote Jim Chanos, it is the same few 100… Read More The post All-Time Hedge Fund Earners appeared first on The Big Picture.

MiB: Ray Dalio of Bridgewater on Principles for Work & Life

This week I sat down with Ray Dalio of Bridgewater Associates. He is the founder, chairman, CIO and outgoing CEO of the firm, which manages $160 billion dollars. Dalio has been a global macro investor for more than 45 years, having started Bridgewater out of a two-bedroom apartment in New York City in 1975. He’s also the… Read More The post MiB: Ray Dalio of Bridgewater on Principles for Work & Life appeared first on The Big Picture.

Transcript: MiB interview with Ray Dalio

    This week’s podcast with Ray Dalio has generated a lot of feedback. Enough of you requested the transcript that we rushed it, and you can find it below. The audio can be found here Bloomberg, iTunes, Overcast, and Soundcloud; all of our prior podcasts are here: iTunes, Soundcloud, Overcast and Bloomberg.   ANNOUNCER: This is Masters in Business with Barry Ritholtz, on… Read More The post Transcript: MiB interview with Ray Dalio appeared first on The Big Picture.