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.
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 […]
A jury acquitted front line workers in the horrific Lac-Mégantic "bomb train," but the higher-ups have not been held to account.
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.
Hedge Funds Had a Good Year, Just Not Good Enough And yet an industry with high fees and ho-hum performance continues to thrive. Bloomberg, January 12, 2018 Attention hedge-fund investors: I have some good news for you. I also have some not so good news. The good news is that 2017 saw… Read More The post Good News / Bad News for Hedge-Fund Investors appeared first on The Big Picture.
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.
A Hedge Fund Giant Found Lots of Value in Failure The world’s biggest hedge fund springs from the wreckage of his monumental error. Bloomberg, December 11, 2017 By any conceivable measure, Ray Dalio, head of Bridgewater Associates LP, is a wild success. The founder of the world’s largest hedge fund with $160… Read More The post Ray Dalio on The Fine Art of Failure appeared first on The Big Picture.
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.
This week we sit down with Ray Dalio of Bridgewater Associates. Dalio 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 Associates appeared first on The Big Picture.
Arguably the UK’s most influential think tank, Legatum’s background in 'disaster capitalism’ reveals much about its Brexit agenda.