Hedge-fund prodigy takes a $300 million hit

[Guile]

She held the entire fund's AUM (zero leverage) in Valeant shares. Darwin.

Fuck.
Darwin award winner.

 

[marketsurfer]

You're supposedly an allocator -- so how do you reconcile that Matador never had more than $500MM, and as EPrado stated, the low-vol returns get the most capital? Astenbeck, for example, has $2B in AUM. Why does Bridgewater have $150B while returning 6%?

I don't know why Matador only took in $500 million-- perhaps that was all he was comfortable with or needed at the time-- remember, VN is old school when $100 million was considered huge----

Obviously, low vol returns are obtain the most capital due to the institutional allocators such as pension funds etc demanding the low vol returns.

Remember, I work with small niche capacity restrained funds, i don't know much about the goliaths of the business.

surf

 

[marketsurfer]

Fuck.
Darwin award winner.

Would have been a hero had things gone the other way----

 

[Guile]

I don't know why Matador only took in $500 million-- perhaps that was all he was comfortable with or needed at the time-- remember, VN is old school when $100 million was considered huge----

Obviously, low vol returns are obtain the most capital due to the institutional allocators such as pension funds etc demanding the low vol returns.

Remember, I work with small niche capacity restrained funds, i don't know much about the goliaths of the business.

surf

If that is true, why are you generalizing? Your niche market is obviously not representative of the industry as a whole.

 

[Guile]

Would have been a hero had things gone the other way----

I can only repeat myself.

 

[destriero]

I don't know why Matador only took in $500 million-- perhaps that was all he was comfortable with or needed at the time-- remember, VN is old school when $100 million was considered huge----

Obviously, low vol returns are obtain the most capital due to the institutional allocators such as pension funds etc demanding the low vol returns.

Remember, I work with small niche capacity restrained funds, i don't know much about the goliaths of the business.

surf

$100MM was considered huge in 1998?

 

[Guile]

$100MM was considered huge in 1998?

Nice catch. Ltcm, quantum and several other funds were active at that time. Hedge funds were mainstream by 1998.

 

[destriero]

I don't know why Matador only took in $500 million-- perhaps that was all he was comfortable with or needed at the time-- remember, VN is old school when $100 million was considered huge----

Obviously, low vol returns are obtain the most capital due to the institutional allocators such as pension funds etc demanding the low vol returns.

Remember, I work with small niche capacity restrained funds, i don't know much about the goliaths of the business.

surf

This post is diametrically-opposed to your previous that stated that WS rewards the reckless and concentrated while kicking the low-vol to the curb. So now the big money goes to firms with low variance...

So which is it?

 

[marketsurfer]

This post is diametrically-opposed to your previous that stated that WS rewards the reckless and concentrated while kicking the low-vol to the curb. So now the big money goes to firms with low variance...

So which is it?

Wasn't merriweather funded with another billion plus after ltcm? I think its proven that the bigger you blow up the more money you get next time-- sure there's exceptions.

Heck, VN is an example. Matador was his largest operation by far.

 

[marketsurfer]

$100MM was considered huge in 1998?

For non institutionalized type operations, sure-- it is still big for single manager outsourcing types.