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.
An update on an important pension fund fiduciary duty case.
Hedge funds have made a killing on the FANGs, but the popular group of tech stocks seem to be losing some luster with big hedge funds.
Lee Cooperman of Omega Advisors has a billion-dollar problem. Over the course of his career, he has accumulated lots of money. Now, he plans on giving it all away during his lifetime. This turns out to be much more challenging than you might imagine. First, you have to wind down the hedge fund you have… Read More The post MIB: Lee Cooperman on Giving Away Billions appeared first on The Big Picture.
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.
How hedge fund activists, who largely operate as a type of corporate raider, have subverted the notion of "shareholder democracy" and what can be done to rein them in.
Leftout podcast of The Hudson Report, with Michael Hudson, discussing the award to Argentina of the biggest loan in the IMF’s history (includes transcript).
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.
Hedgies made hundreds of millions speculating on the British pound the night of Brexit. Did Brexiteer Nigel Farage help them do it?
Hedge Funds Bear the Blame for Looking Bad They compared themselves to the S&P 500, then complained when they underperformed. Bloomberg, June 1 2018 A couple of weeks ago, Barron’s interviewed mutual fund legend Jack Bogle, the inventor of the index fund and founder of Vanguard Group. One intriguing exchange caught my eye:… Read More The post Love the Player, Hate the Game appeared first on The Big Picture.
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.
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.
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.
Is a pension fund management revolution brewing in what would seem to be the most unlikely place, that hotbed of corruption, the Kentucky Retirement Systems?
Source: GMO via Idea Farm Of all the things that investors do, the selection, hiring and firing of managers is simultaneously the most important and yet perhaps the thing most investors are least equipped to do. I was reminded of that when I saw the chart above, via Ben Inker of GMO. If you look… Read More The post Hiring and Firing Talented Asset Managers appeared first on The Big Picture.
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.
Decoding the press release on the new health care venture from Berkshire Hathway, Amazon, and JP Morgan.