Hedge-fund prodigy takes a $300 million hit

Its like sports you become a millionaire/ famous before you played a down based on your pedigree. In trading/ investing pedigree being graduation from a top school and in this case also Julian Robertson backing
 
This smells like an affirmative action hire. The press is ready to anoint any moderately competent woman as a heroic modern day Joan of Arc. This is where that kind of bullshit leads...
 
Only the losses make the news. You wouldn't see a report announcing that she had hit one outta the park and MADE the same amount.
 
I'd like to see the mandate for that fund. Obviously "hedging" is not part of it. They have pared down the Valeant to 10% of the portfolio, although it probably contributed a lot of that just by going down. So how big was their position? How is that prudent, even if it is a fund for sophisticated rich people?
 
RedDuke said:
http://www.marketwatch.com/story/hedge-fund-prodigy-takes-a-300-million-hit-2015-11-09

Why do they even call them hedge funds. basically she just went long with a huge position and hoped for the better. Bull market is making way too many geniuses.

The most amazing part of such stories is how do they get such huge allocations on such basic strategies.
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I would imagine that down the road the 2/20 payout structure for these big funds will go down to something like 0/10. They all do fine when the market is quiet/rising, but when you have a sell off you see gigantic draw downs. These guys make 1-3% on a good month when things are quiet, then you get a month like August and they lose 10+%.

The other thing is some of these big funds have PM's that don't know how to cut loses. It's not like Valeant happened in one night. The ones that got caught in Shire last year, sure, that was an overnight disaster, but this one gave people time to get out.
 
AAAintheBeltway said:
I'd like to see the mandate for that fund. Obviously "hedging" is not part of it. They have pared down the Valeant to 10% of the portfolio, although it probably contributed a lot of that just by going down. So how big was their position? How is that prudent, even if it is a fund for sophisticated rich people?
More...

Yep. My point exactly. I am going through funds raising myself, and it is such a difficult and up heal battle. The amount of scrutiny is insane.

It all began from association to Julian Robertson, but it is staggering that her wealthy investors can be so ignorant about how their $ are invested.
 
It's to differentiate between pension funds, mutual funds etc.

Hedge funds can short stocks, take positions in private equity, non-public listed companies,

Mutual funds can only buy publicly listed companies and can only go long and minimum positions or more strict criteria or investment risk in their portfolio. They cannot be on margin unlike hedge funds that can be 50% margin.


RedDuke said:
http://www.marketwatch.com/story/hedge-fund-prodigy-takes-a-300-million-hit-2015-11-09

Why do they even call them hedge funds. basically she just went long with a huge position and hoped for the better. Bull market is making way too many geniuses.

The most amazing part of such stories is how do they get such huge allocations on such basic strategies.
More...
 
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