Billionaire Stock Picker Jeffrey Vinik to Shut Down Hedge Fund

[dealmaker]

Billionaire Stock Picker Jeffrey Vinik to Shut Down Hedge Fund(The Wall Street Journal)
Billionaire investor Jeffrey Vinik said he is closing his stock-picking hedge fund less than eight months after he started it, the latest sign of challenges facing the hedge-fund industry. The closure puts an end to what would have been the third comeback for the former Fidelity Investments star and current owner of the Tampa Bay Lightning professional hockey team.

 

[zdreg]

https://www.cnbc.com/video/2019/10/24/jeffrey-vinik-hedge-fund-interview-squawk-box.html

It is an honest interview.

 

[SPYAlgoTrader]

did not beat SPY despite "putting in 75 hours a week"

 

[zdreg]

did not beat SPY despite "putting in 75 hours a week"

His lackluster performance was due to paying commissions.

 

[drm7]

To be fair to Vinik, a long-short fund shouldn't be benchmarked to the S&P 500 (which is 100% long). If he is only 50% net long, he should be benchmarked to a 50/50 stock/bond portfolio. The benefit of long-short funds isn't big absolute returns, it is positive returns that have low correlation to stock and bond markets.

 

[MKTrader]

did not beat SPY despite "putting in 75 hours a week"

Yeah, but tons of retail noobs here at ET are going to "trade for a living" once they figure out how options work and borrow $3,000 to open their account.

 

[MKTrader]

To be fair to Vinik, a long-short fund shouldn't be benchmarked to the S&P 500 (which is 100% long). If he is only 50% net long, he should be benchmarked to a 50/50 stock/bond portfolio. The benefit of long-short funds isn't big absolute returns, it is positive returns that have low correlation to stock and bond markets.

So how did he do vs. 60/40? And while what you're saying makes since conceptually, I've seen long-short strategies manage to go very wrong and have drawdowns that rival buy-and-hold...so it all depends on his performance.

 

[drm7]

I'm definitely not defending his record (and I'm not sure what his net long position is - 0% net long is usually benchmarked to LIBOR + 3-5 or something), and he probably underperformed 60/40. I just hate when these articles constantly compare long/short returns to S&P.

 

[helpme_please]

if you were a client, would you have confidence in a money manager with a track record of shutting down his fund?

By the way, is he shutting down his fund because his fund could not collect enough risk-free fees as the asset under management is not large enough?

 

[dealmaker]

Scaramucci Slashes his Sights on His Opportunity Zone Fund(TheRealDeal.com)
Anthony Scaramucci’s SkyBridge Capital initially sought to raise $3 billion in Opportunity Zone funds to invest nationwide through a REIT, but so far said he has only raised about $30 million. And he has reduced his target to $300 million. “A lot of people misplaced and outsized the demand for what we thought we could achieve,” said Scaramucci, the keynote speaker at an NAIOP South Florida event at the Ritz-Carlton in Fort Lauderdale Beach on Wednesday. “I still think it’s a success for us, but it’s nowhere near as successful as we thought it would be.”