DOCSLIB.ORG

Investments & Wealth Monitortalks With

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Investments & Wealth Monitortalks With FEATURE | I&WM TALKS WITH JACK SCHWAGER MARKET WIZARDS, SEED INVESTORS, RISK, AND VOLATILITY Investments & Wealth Monitor Talks with Jack Schwager ack Schwager is a founding partner of decide they are wrong. It was a common become convinced about in doing these FundSeeder, an online platform for occurrence when I interviewed traders over interviews, it is that there is no single right Jconnecting seed investors with undis- multiple sessions that they would be strongly approach or best market, and even if there covered trading talent. Previously he was a bullish on a market on the first interview is at any moment, in time, it will change. partner in the Fortune Group, a London- and strongly bearish on the same market in My advice to traders is always: Don’t worry based hedge fund advisory firm that the second interview or vice versa. Virtually about finding the right approach, but rather specialized in creating customized hedge all market wizards also understand that con- finding the right approach for you. fund portfolios for institutional clients. trolling losses is more important than win- His earlier experience includes 22 years ning. Note that I didn’t say, “avoiding losses,” I&WM: How can they be recognized? as director of futures research for some of but rather, “controlling losses.” Successful Wall Street’s leading firms and 10 years as traders understand that they can’t win with- Schwager: Of course, they can be recog- the co-principal of a commodity trading out taking losses, but the key is not letting nized in hindsight by the track record. But, advisor. Mr. Schwager has written exten- any single loss do much damage. Another otherwise, it is very difficult to gauge who sively on the futures industry and great trait of the market wizards is that they don’t will be a market wizard. Even those traders traders in all financial markets. He is author give up. Many of the great traders I inter- who have initial great success don’t neces- of a best-selling series of interviews with viewed made financially disastrous mistakes sarily maintain it. One trait they do share is great hedge fund managers of the past two early in their careers, some of them even a strong confidence in their ability to be decades: Market Wizards, The New Market wiping out more than once. But regardless of successful in the markets. Another is a pas- Wizards, Stock Market Wizards, Hedge Fund these difficulties, they persisted because of a sion for trading the markets as a game-like Market Wizards, and most recently, The strong sense of self-confidence that they challenge—an endeavor they would proba- Little Book of Market Wizards: Lessons from would eventually succeed if they just kept bly be drawn to even if it didn’t offer the the Greatest Traders. at it. potential for great monetary rewards. I&WM: What makes for an outstanding I&WM: Are they more prevalent in partic- I&WM: How do they successfully mitigate trader (your so-called market wizard)? ular investment disciplines? risk? Schwager: It is not one thing but rather Schwager: No, I really don’t think so. Some Schwager: There are, of course, many differ- many, many factors that contribute to mak- of the traders I interviewed used only tech- ent approaches to risk control, but most ing a market wizard. Any way that I answer nical analysis, while others used only fun- share a focus on limiting the amount of this question will be sorely deficient. In a damental analysis—often with disdain for damage that can be caused by a losing trade sense, the Market Wizard books are an the opposite approach. There are also many or multiple losing trades. One simple rule answer to this question. But I can at least traders who combined the two. Some trad- that was used by a number of the traders is summarize a few of the essential traits. ers used complex quantitative methodolo- to never risk more than X percent on any Market wizards are not emotionally invested gies, while others were completely non- single trade. The “X” of course varied from in their trades. They have a method and fol- mathematical. The traders also ranged trader to trader but was usually a small low their method. They have no loyalty to across entirely different markets including number—1 percent or less. A number of their positions and are able to change their equities, foreign exchange (FX), futures, traders mentioned the necessity of deciding minds quickly when the facts so dictate. and options. There was also no commonal- on an exit point before entry. Bruce Kovner, Changing their minds means not merely ity in time horizon, with approaches run- founder of Caxton Associates, stated this getting out of a trade when the facts change ning the gamut from day-trading to multi- principle effectively and succinctly as the but even reversing their positions when they year positions. If there is anything I have following: “Decide where you will get out 38 INVESTMENTS&WEALTH MONITOR © 2014 Investment Management Consultants Association Inc. Reprinted with permission. All rights reserved. FEATURE | I&WM TALKS WITH JACK SCHWAGER before you get in.” I think this line may be takes a position in a market because they The purpose of FundSeeder for traders the single most important or valuable advice have a good reason to believe that a move would not be to seed an initial account but offered by any trader. The reason for decid- in one direction is more likely, then there is rather to gather investor assets (or additional ing where to get out before you get in is that no difference between a speculator and a investor assets) to manage. The time neces- before you enter the trade, you have com- trader. If, however, the intention of the sary before raising investor assets would be plete objectivity; once you are in a losing term is to imply a person who takes gam- dependent on the individual investors and position, emotions will cloud the decision bling-type risks, then they are completely their requirements. FundSeeder will have process. Some traders also seek to control different concepts. Successful traders are the in-house capacity to audit past track risk by limiting the amount of loss they will not gamblers, and gamblers invariably are records at cost for those traders who wish to allow in any given period (e.g., year, month). doomed to failure in the markets. The key be able to display a longer verified track One point that should be made is that effec- difference is that traders take positions record. It is anticipated that most invest- tive risk control does not have to be com- when the odds are in their favor, whereas ments will be via managed accounts. For plex, it just has to be applied with discipline. gamblers will take risk even when the odds some traders, investor interest could lead to are against them. the formation of a fund the trader manages, I&WM: What are the major changes to but not directly by FundSeeder because we recent trading practices and how are a technology company, not an have those changes affected market investment company. wizards and their strategies? Should The biggest change that has investors be more concerned? occurred since my first Market I&WM: What do you consider to be “ the most critical investment falla- Schwager: The biggest change that Wizard book … is the exponential cies? What advice would you offer has occurred since my first Market growth in computing power and the to the IMCA audience? Wizard book, which came out in 1989, is the exponential growth in resulting huge increase in the use Schwager: Perhaps the most perni- computing power and the resulting of computers for trading. cious investor mistake is to select huge increase in the use of comput- ” investments based on those with the ers for trading. Without question, best recent performance (e.g., past many trading approaches are being one–five years). Investors will tend used today that would have been impossi- I&WM: How will you identify seed inves- to enter the stock market after it has done ble 25 or more years ago. I don’t know that tors to match with undiscovered traders? very well in recent years. Similarly, people this change should be a source of particular tend to invest in sectors or strategies that concern to traders. For one thing, the Schwager: You are referring to our website have significantly outperformed in recent power of computing also aids individual fundseeder.com. One beauty of the site is years. This type of approach works very traders and makes it possible for them to that we don’t have to match seeding inves- poorly. Just because an investment has done employ approaches that would have been tors with emerging traders; they match very well in recent years does not make it impossible before. For another, professional themselves. FundSeeder provides the more likely that it will do well in coming traders always had a built-in advantage forum with which traders and investors can years. In fact, often, the best sectors or asset over the individual trader; it is only the connect. Traders sign up to have their classes in recent years tend to underperform nature of the advantage that has changed. results verified real-time through brokerage in the following years. The basic reason is As far as high-frequency traders go, yes data feeds. Investors use the site’s platform that once a market has outperformed suffi- they draw money out of the markets, but to search for traders meeting their criteria.
Load more

Recommended publications
  • AG Capital Management Partners, L.P. Commodity Trading Advisor
    AG Capital Management Partners, L.P. Commodity Trading Advisor CTA Spotlight: AG Capital Management Partners, L.P. August 2020 Trading futures and options involves substantial risk of loss and is not suitable for all investors. There is no guarantee of profit no matter who is managing your money. Past performance is not necessarily indicative of future results. An investor must read and understand the CTA's current disclosure document before investing. Impressive Performance AG Capital’s managed account program is the Discretionary Global Macro Program (“Program”). Ending March 2020, the Program’s cumulative return has outperformed the S&P by over 400% since its inception in October 2014 (247% vs. 47%). Even before the first quarter of 2020’s plunge in stocks, the Program had performed very well. During one of stocks’ best runs in history, ending in December 2019, AG Capital's cumulative return of 161% strongly outperformed the S&P’s cumulative return of 82%. Be advised that past performance is not necessarily indicative of future results. Discretionary Global Macro Program (October 2014 - August 2020) Compound ROR 25% Cumulative Return 276% Worst Drawdown 25% (February 2016 – January 2017) Best 36 Month Period 131% (May 1, 2017 – April 30, 2017) Worst 36 Month Period 12% (December 1, 2015 – November 30, 2018) Average 36 Month Period 68% (October 2014 – August 2020) AG Capital VS. S&P 500 TR* (October 2104 through August 2020) AG Capital S&P 500 TR Annualized Compounded ROR 25% 12% Cumulative Return 276% 100% Worst Cumulative Drawdown 25% 20% Program’s Performance During S&P Losing Months The risk of loss in futures and options trading is substantial no matter who is managing money.
    [Show full text]
  • KENTUCKY RETIREMENT SYSTEMS SPECIAL CALLED INVESTMENT COMMITTEE MEETING AGENDA Wednesday, April 15, 2020 10:00 A.M
    Special Called Investment Committee Meeting - Agenda KENTUCKY RETIREMENT SYSTEMS SPECIAL CALLED INVESTMENT COMMITTEE MEETING AGENDA Wednesday, April 15, 2020 10:00 a.m. 10:00AM Call to Order 10:01AM Approval of Minutes*- February 4, 2020 10:02AM Public Comment 10:05AM New Fund Recommendation* Blue Torch – Anthony Chiu / Rich Robben 10:45AM Performance Review 10:55AM Recent Transactions and Current Allocations 11:05AM TIPS Portfolio Runoff* 11:30AM Adjourn * All times are approximations, one or more items on this agenda may be discussed in closed session. 1 Special Called Investment Committee Meeting - Approval of Minutes* - February 4, 2020 MINUTES OF MEETING KENTUCKY RETIREMENT SYSTEMS QUARTERLY INVESTMENT COMMITTEE FEBRUARY 4, 2020, 9:00 A.M., E.T. 1270 LOUISVILLE ROAD, FRANKFORT, KENTUCKY At the February 4, 2020 Quarterly Investment Committee Meeting, the following Committee members were present: David Harris (Chair), Joseph Grossman, Sherry Kramer, Kelly Downard, Keith Peercy and John Cheshire. Trustees Betty Pendergrass and Jerry Powell were also present. Staff members present were David Eager, Victoria Hale, Kathy Rupinen, Rebecca Adkins, Shaun Case, Phillip Cook, Ann Case, Kristen Coffey, Jared Crawford, Rich Robben, Andy Kiehl, Anthony Chiu, Joseph Gilbert, Alane Foley and Carol Johnson. Also in attendance were Chris Tessman, Craig Morton, and David Lindburg from Wilshire, Larry Totten, Steve Willer and Michele Hill. Mr. Harris called the meeting to order and Ms. Carol Johnson called roll. Mr. Harris introduced agenda item Swearing in of New Trustee. Mr. John Cheshire was introduced to the Committee and provided a brief personal introduction. Ms. Foley, as Notary, administered the Oath of Office to Mr.
    [Show full text]
  • Hedge Fund Alert Save 15% - Quote: INVESTHFA15 When Booking Online: Investops.Wbresearch.Com
    JANUARY 25, 2017 Backer Considers Exit From Shrinking Zais A hedge fund manager who helped salvage Zais Group’s attempts to go public 2 JP Morgan Pursues Seeding Deals appears to have lost patience with the firm. Neil Ramsey, Zais’ largest outside shareholder, said in a Jan. 11 SEC filing that he 2 Bank-Focused Shop Books Big Gain had approached the company’s management about “potential strategic alternatives” 2 Profitable Year for Volatile Quantedge that would allow external stockholders to cash out. Such an effort, he continued, could result in a large-scale transaction for Zais that might include a merger or asset sale. 3 Mayo Anchors ‘Best Ideas’ Vehicle There’s no official explanation for Ramsey’s push. But Zais, a Red Bank, N.J., investment firm that trades largely in corporate debt, collateralized loan obligations 3 Macro Fund Offers Extreme Volatility and mortgage securities, has seen its share price fall from an initial $10 in 2015 to 3 Narang Launches Fund With Lofty Fees about $1.50 now. That plunge caused the value of Ramsey’s investment to drop from $95.8 million to $14.6 million. 4 Tullett Installs NY Secondary Team Zais’ revenues also have declined, to $14.9 million for the nine months ended See ZAIS on Page 4 5 Beach Point Ramps Up MBS Issuance 6 LATEST LAUNCHES GMT Capital Cuts Fee Despite Good Returns GMT Capital, a $4.8 billion equity fund manager, is reducing the amount it charges limited partners for management expenses — joining a growing list of fund shops that are cutting fees amid slack returns and sagging demand for hedge funds generally.
    [Show full text]
  • In the Hedge Fund
    P2BW13100B-0-W01100-1--------XA EE,EU,MW,NL,SW,WE 50 BARRON'S May11, 2009 May 11, 2009 BARRON'S 11 BLACK The Hedge Fund 100 Despite a horrible year in most global markets, these 100 funds all have three-year annualized returns that run to solid double digits; a majority were up in 2008. Remarkably, one firm, Paulson, has two funds in the top Index to Companies four, No. 1 Paulson Advantage Plus (event-driven) and No. 4 Paulson Enhanced (merger arbitrage). In second place is Balestra Capital Partners, a global macro fund, third is Vision Opportunity Capital, a merger arbitrage fund, and fifth was Quality Capital Management-Global Diversified. Strong performance in weak markets is hedge funds’ most basic appeal and these funds did nothing to dispel that idea last year. Our index lists significant references to companies mentioned in stories and columns, plus Research Reports and the Insider Transaction table. The references are to the first page of the item in which the company is mentioned. Fund 3-Year 2008 Total Firm A Rank Fund Assets (mil) Fund Strategy Annualized Returns Returns Company Name / Location Assets (mil) Abbott Labs.53. 05/11/2009 Abercrombie & Fitch.17. H Hain Celestial Group.M15. 1. Paulson Advantage Plus $2,171 Event Driven 62.67% 37.80% Paulson / New York $30,000 Amazon.com.M5. Hanger Orthopedic.56. Ambac Financial.17. Hansen Natural.23. 2. Balestra Capital Partners 800 Global Macro 61.24 45.78 Balestra Capital / New York 990 American Axle.40. Harley Davidson.58. 3. Vision Opportunity Capital 357 Relative Value 61.13 6.96 Vision Capital / New York 733 American Electric Power.43.
    [Show full text]
  • Conference Guide Conference Sponsors
    TALKING HEDGE Talking Managed Futures & Global Macro: Strategies to Optimize Institutional Portfolios November 2-3, 2016 | OMNI Downtown Austin CONFERENCE GUIDE CONFERENCE SPONSORS 100 Canal Pointe Boulevard ● Suite 214 ● Princeton, New Jersey 08540 609.252.9015 www.ccrow.com TALKING HEDGE Welcome to the delegation of Talking Managed Futures and Global Macro: Strategies to Optimize Institutional Portfolios. We are delighted you can join us and confident that you will receive a solid return on your investment in this event. We formed Talking Hedge to bring together the best minds in alternative investing—allocators, managers and solutions providers—to have open and candid discussions about the challenges each group faces. Our events are designed specifically to give you time to talk and time to meet in a meaningful way. Our goal is for you to walk away with the information you need to meet the challenges of tomorrow. We extend a special thanks to our partner Remy Marino and his team at Deutsche Bank for their partnership and creativity in helping us shape the discussion for a second consecutive year. Our sincere appreciation to all of our sponsoring firms: Abraham Trading Company, Arthur Bell, Campbell & Company, CME Group, Crow & Cushing, Efficient Capital Management, ISAM, Lyxor Asset Management, Quadratic Capital Management, RCM Alternatives, Sunrise Capital Management and Thales Trading Solutions for recognizing the value of this forum and collaborating with us to ensure its success. A special shout-out to RCM Alternatives and Arthur Bell for sponsoring our opening reception! We would also like to thank our stellar speaking faculty for taking the time to develop thoughtful and thought-provoking sessions that will provide much to discuss over coffee and cocktails.
    [Show full text]
  • The IEOR Department Extends a Warm Welcome to Mr
    Key Note Speaker Financial Engineering Orientation @ Columbia University Ms. Tanya Beder Chairman, SBCC Key Note Speaker With over 25 years of experience in the global capital markets, Ms. Beder founded and served as President of SBCC from 1987 to 1994, returning as Chairman in 2006. During the interim, Ms. Beder held two senior positions in the asset management industry. She was CEO of Tribeca Global Management LLC, a $3 billion dollar multi-strategy fund with offices in New York, London and Singapore and Managing Director of Caxton Associates LLC, a $10 billion asset management firm in New York. At SBCC, Ms. Beder heads the global strategy, risk, derivatives, and asset management practices. Clients include banks, asset management companies, broker dealers, family offices, pension funds, mutual funds, hedge funds, insurance companies and corporations from around the world. She especially works with Senior Management and Boards of Directors in assessing their firm’s position in the current financial landscape. Her consulting clients have included banks, broker dealers, insurers, hedge funds and companies such as CalPERS, Microsoft, Metropolitan Life, Bankers Trust, Orange County, The Common Fund, Alliance Capital, Credit Lyonnais, National Australia Bank, Mitsubishi Bank, Grupo Financerio, Ontario Teachers’ Pension Plan Board, PT Cibinong, Anglo Irish Bank, among hundreds of firms on six continents. Ms. Beder also served as President of Capital Market Risk Advisors and was a Vice President of The First Boston Corporation (now Credit Suisse) where she focused on mergers and acquisitions in London and New York and then on mortgage-backed securities, derivatives trading and fixed income research. Ms.
    [Show full text]
  • IIE Perf Risk Hedge Fund.2
    Performance & presents Risk Measurement for Hedge Funds November 17-18, 2004, Flatotel, New York City Learn the Latest Techniques in Hedge Fund Performance Measurement, Risk Management, Style Analysis, Indexing and Asset Allocation Get expert practical insights into: I Current practices and recent breakthroughs in hedge fund performance evaluation and risk management I Portfolio transparency, performance reporting and disclosure issues: what do investors and potential investors need to know? I Best practices in hedge fund valuation and pricing – addressing the valuation problems specific to different styles and strategies I Hedge fund allocation strategies and their impact on performance I Hedge fund indexing as an effective benchmarking tool PLUS: Interactive Half-Day Workshop chaired by Thomas Schneeweis, Director – CISDM and Editor – Journal of Alternative Investments Hear from: CHAIR: Michael G. Tannenbaum, Tannenbaum Helpern Syracuse & Hirschtritt LLP/Hedge Fund Association I Raj Gupta, CISDM/Journal of Alternative Investments I E. Lee Hennessee, Hennessee Group LLC I Roy D. Henriksson, Advanced Portfolio Management I Sudhir Krishnamurthi, Managing Director, Rock Creek Group I Rick Lake, Lake Partners I Jeff Landle, The Hardt Group I Ron Liesching, Pareto Partners I Robert McFall Lamb, Jr., Deutsche Bank I Leon M. Metzger, Paloma Partners Management Company I Jacqueline Meziani, Standard & Poor’s I Joanna Peters, StratconGlobal, Inc. I Leslie Rahl, Capital Market Risk Advisors I Virginia Reynolds Parker, Parker Global Strategies,
    [Show full text]
  • Tax Considerations for 2019
    Tax Considerations for 2019 28TH ANNUAL PRIVATE INVESTMENT FUNDS SEMINAR JANUARY 22, 2019 Philippe Benedict Philippe focuses his practice on the tax aspects of investment funds, mergers and acquisitions, international transactions, real estate transactions and financial instruments. He has advised on many major transactions involving sales or spinoffs of investment fund managers, including Senator Investment Group LP’s sale of a minority stake to The Blackstone Group LP, Caxton Associates LP’s sale of a minority interest to the Petershill II Fund affiliated with the Goldman Sachs Group Inc., and Partner Credit Suisse’s sale of Strategic Partners to The Blackstone Group LP. New York Office Philippe advises on the tax aspects of securitizations, including his recent +1 212.756.2124 representation of affiliates of Fortress Investment Group LLC and affiliates [email protected] of Highbridge Capital Management in the securitization of their leveraged facilities. He has also advised multiple alternative asset managers on the Practices formation and structuring of funds, including Engineers Gate with the launch of a quant fund, Clearfield Capital with the launch of a hedge fund, Tax Warlander Asset Management LP with the launch of a credit fund, and D1 Real Estate Capital Markets & Capital Partners in the formation of a new fund; Gunnar Overstrom, REITs formerly a partner at Maverick Capital Ltd., in the formation of Three Corner Global Investors LP; Junto Capital Management LP on the launch of Junto Capital Partners LP and Junto Offshore Fund Ltd.; Trian Fund Management LP on all aspects of launching new co-investment hedge funds; Sachem Head Capital Management LP with the launch of hedge funds and the establishment of long/short equity funds; and Capstone Investment Advisors LLC, JANA Partners, MKP Capital Management LLC and Scopia Fund Management LLC in their respective sales of a passive minority interest to Neuberger Berman Group-managed private equity fund Dyal Capital Partners.
    [Show full text]
  • Quant Congress USA 2011
    Book now and save over $500 July 12-14, 2011, New York Navigating a new fi nancial landscape: practical approaches to risk management and derivatives pricing, modeling, hedging and trading Now in its 9th year, Quant Congress USA is the must-attend event for education and practical application of derivatives developments and quantitative risk management. Identifying the latest advances, Quant Congress USA will provide invaluable insight into quantitative strategies adopted by leading fi nancial institutions. Attend and hear from pioneers in the advancement of quantitative fi nance including: Robert Jarrow, Professor of Finance and Economics, CORNELL UNIVERSITY Darrell Duffi e, Dean Witter Distinguished Professor of Finance, the Graduate School of Business, STANFORD UNIVERSITY Sanjay Sharma, Chief Risk Offi cer, Global Arbitrage and Trading, RBC CAPITAL MARKETS Presentation sponsor: Co-sponsor: Associate sponsor: quantcongressusa.com RMRQUSAC11_BR12PP_PRINT.indd 1 3/31/11 9:25:33 PM Register now: Online: quantcongressusa.com Email: [email protected] Tel.: +1 (212) 457 9400 About the conference The financial industry has seen some major changes over the past four years including the overhaul of regulation and unexpected market movements. During this period the role and importance of quantitative risk management has been elevated, particularly in the trading space. Quant Congress USA 2011 will address crucial issues and offer answers to the most urgent and current questions facing the quantitative finance community worldwide through a platform of innovative research, cutting-edge practical applications and invaluable insights. Understanding the potential direction that financial markets could take is just one of the many reasons why the 2011 event promises to be a vital and important meeting for the quantitative community.
    [Show full text]
  • Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How
    Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How Peter J. Wallison Thomas H. Stanton Bert Ely Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How Peter J. Wallison Thomas H. Stanton Bert Ely The AEI Press Publisher for the American Enterprise Institute WASHINGTON, D.C. Contents INTRODUCTION AND SUMMARY, Peter J. Wallison 1 Why 1 The Risks Created by the Housing GSEs 2 Financial Risk to the Taxpayers 2 Systemic Risk 6 Mission Creep 10 Can Regulation Substantially Reduce These Risks? 13 Do Fannie and Freddie Deliver Benefits Worth These Risks? 16 Federal Home Loan Banks 18 Affordable Housing 20 The Privatization Plan 21 Privatizing Fannie Mae and Freddie Mac 21 Mortgages and MBSs Held in Portfolio 21 Mortgage Securitization and the Issuance of MBSs 22 The Establishment of Holding Companies and Affiliates 24 Privatizing the Federal Home Loan Banks 26 Termination of Activities Other Than Collateralized Lending 26 The Establishment of Holding Companies and Affiliates 27 Lowering Housing Finance Costs 28 Cost Reductions Attributable to the Use of the MHS Vehicle 31 SECTION-BY-SECTION SUMMARY: THE FEDERAL HOUSING ENTERPRISES PRIVATIZATION ACT, Thomas H. Stanton 37 SECTION-BY-SECTION SUMMARY: THE MORTGAGE HOLDING SUBSIDIARY ACT, Bert Ely 47 v vi FANNIE MAE, FREDDIE MAC, AND THE FEDERAL HOME LOAN BANKS A BILL 59 The Federal Housing Enterprises Privatization Act 59 The Mortgage Holding Subsidiary Act 91 APPENDIXES 101 NOTES 109 ABOUT THE AUTHORS 113 Introduction and Summary Peter J.
    [Show full text]
  • Outliving the Founder's Participation
    outliving the founder’s participation Succession Planning for Hedge Funds As a generation of hedge fund founders looks ahead to retirement or plans to move on to other opportunities, the industry is wrestling with the question of succession: Can a hedge fund outlive its founder’s participation? Some fund managers have concluded that the answer is no, closing their funds and returning capital to investors. Other fund managers are looking for ways to maintain the business as they transition out, through succession, sale or other strategies. Succession also has become an increasingly important consideration for investors: 67 percent of investors in a recent Ernst & Young survey said a well-articulated succession plan is important to them when investing in more established hedge funds. Interestingly, only 38 percent of hedge funds considered a well-articulated succession plan important for retaining investors. Unfortunately for those who do want to achieve an orderly succession, there are relatively few successful models to follow. What is clear is that succession handled poorly can drive away investors and cause the fund to close. Outliving the Founder’s Participation: Succession Planning for Hedge Funds What makes succession planning for a hedge fund manager so challenging? Chief among the reasons is the fact that, more than most other businesses, hedge funds are closely tied to their founders and their reputation and trading skill. Investors typically are buying into the founder’s strategy and investment track record; the closer the fund is aligned with a “star” manager, the more challenging it can be to transition leadership of the fund to a successor.
    [Show full text]
  • Fifty Leading Women in Hedge Funds 2019
    FIFTY LEADING WOMEN IN HEDGE FUNDS 2019 IN ASSOCIATION WITH his is our seventh 50 Leading Women developed the first two corporate governance in Hedge Funds report. In an funds in emerging markets. Previous reports encouraging sign of the times, last have featured women from CIAM (Catherine year – after running it as a biennial Berjal); Cevian Capital (Friederike Helfer); Ides Tevent since 2010 – we took the decision that it Capital (Dianne McKeever) and Blue Harbour should be annual. Group (Tanisha Bellur and Lauren Taylor Wolfe, who has now launched her own firm, Impactive Just two of the women have featured in previous s the leading global provider of Capital, with seeding from pension fund reports. One nominee appears because she services to alternative funds CalSTRS). For the first time, we feature a Head has had a significant promotion; the other worldwide, EY is once again of ESG Engagement, at Third Point, and this is has moved to a larger company. Many of the proud to sponsor the 50 Leading likely to be a growing trend. Women have held WomenA in Hedge Funds report and to firms here: The Baupost Group; Bridgewater senior positions in corporate governance for at recognize this accomplished group of Associates; BlueMountain Capital Management; least 20 years, and the profile of these roles is women who are making their mark in the Capital Fund Management; Citadel; D. E. Shaw; industry. We congratulate all the honorees now rising. EY; GAM Systematic Cantab; Man Group; who have been selected by The Hedge Fund Maples Group; Pictet Asset Management; Journal – impressive and inspiring women Alternative credit managers have been Point72 and Simmons & Simmons are recurring who are leading by example.
    [Show full text]