00:00So Nishant what can you tell us about the performance of this hedge fund? Well performance was not really too bad. He had lost seven percent through October this year and previously he has had many years of double digit returns and strong double digit returns. But he said in his letter that these performances did not meet his own standards and therefore he decided to return capital.
00:30Okay so he's returning capital to investors I believe by year end as well. What do we know about his strategy specifically?
00:39It's a long short strategy focused on consumer stocks. That's what he did for nine years at Citadel. So it's a pretty robust you know well formed 15 people team that he walked out with and he set up his own hedge fund and he raised like two billion dollars at the time which was one of the biggest launches that year in
00:592019. What really happening here is and that's where he has spent a good part of his newsletter to investors on is the fight for talent.
01:12You know single strategy hedge funds are finding it harder than ever to compete as multi strategy multi strategy giants where he came from.
01:20You know these these multi strategy firms are hoovering up talent with packages turbocharged by something called pass through fee models. Essentially they pass on all the cost of managing the business to investors and this effectively give them almost unlimited firepower to poach traders and team.
01:41And smaller single manager funds simply can't match that financial muscle and make it making it really tougher for them to sustain their business in this intense war for talent.
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