Long Short Equity

“Well, now there's finally a real cost of capital again. And we think it's a phenomenal shorting environment. Why? Because there's a whole bunch of people that are carrying a ton of debt that was basically for free, which is not for free anymore. And so what we…”

“And so when money's for free and there's no rebate anymore, particularly after Oh eight in hindsight, long short to a degree became less attractive.”

“I worry about cultural dilution. I think long short is a very specific performance oriented business, where you have to be watching what are the great things that I want to be long, and where's the trouble, and what are the bad things happening where I want to…”

“And in long, short equity, I've seen a lot of people who, they're good at the analysis, they're good at saying this is a good company and that's a bad one. But populating a portfolio that actually produces outcomes, That's a totally different skill set, essent…”

“I'd say data is something that people struggle with. Embracing data seems to be a challenge, at least in the long, short equity space. I'm sure I'll hear a lot of people say, no, that's not true, because they scrape data. But it's as simple as, okay, you keep …”

“I think in longshirt equity, it's very hard to run a standalone sector fund. I mean, it's hard to run any sort of fund. You have all the challenges from running an equity fund, but then on top of that, you have all the challenges from running a specialist equi…”

“So there's kind of a sweet spot in the middle where there's enough exposure and let's call this a hundred long by 60 short as sort of a sweet spot, if you will. Depends a little on the volatility and dispersion of the area. You can probably go a little lower t…”

“So what's happened the last 1012 years, you've had a lot more money flow into passive investments versus active investments, and you've had a lot of money flow into the platforms, which Not to paint a broad brush, but generally are shorter term traders. And so…”

“We typically find that if our teams have held stocks for too long, it's usually not a good thing. It's better to be trading in and out of them. There's also a risk of thesis creep, quite frankly. Where you start out in something for one thing and then you wind…”

“There's an amazing opportunity to Continued for spread for long alpha for short alpha for gross alpha with a moderate net or a reasonable net. It just doesn't scale.”

“For me personally, I'm going to capture more spread on the longs because longs have the potential to triple, quadruple, shorts going down a hundred, best case, but probably like 10 to 20. So I want to be tilted more gross exposure in my longs. And if I'm going…”

“The biggest thing that coming into this world, even being a Geller, That I learned at Estimize in talking to so many of these firms about their process for generating trading ideas and fundamental estimates and all of this stuff is really that at the end of th…”

“We have a real focus on alpha, and we want to see managers able to produce alpha on both the long and the short side, and I think a lot of managers that we come across are very adept, consistent at generating long alpha. But those that can really generate shor…”

“At 500 basis points, you needed about three to 400 basis points of alpha to break even through cycle. That lets you lever for long short spread through cycle. Now it's closer to 800 basis points. That's a very heavy lift to break even.”

“We have no long short in the portfolio, so we'll have to pick another one.”

“For the 10% who are really good though, we just think that the distortions between individual stock prices and their fundamentals is just going to continue to grow because it's going to be influenced by ETF flows and index flows and things like that, and so fu…”

“If you look across the firm, probably about, you know, close to half is in long-short equity, maybe 15 or so percent in macro, 20% event-driven and the remainder in relative value. Very little quantitative strategies and very little in the way of strategy that…”

“We actually think long, short equity is the strategy where you get the most diversification among underlying managers.”

“So long, short equity, which you know, is a good part of what we do. We've always preferred smaller managers and managers with a sector of expertise, you know, all else equal.”

“I think what people have missed is that the big value on the short side is, is very episodic. It's not just month in or year in and year out.”