long-short equity
also referred to as: long short equity · long, short equity · long/short equity
20 statements across 12 episodes · 8 bullish · 6 bearish · 11 people on the record · first statement Jun 12, 2017 by Larry Kochard · across every show →
Everything said about long-short equity, oldest first
Jun 12, 2017 positive
Jul 17, 2017 positive
Jul 17, 2017 positive
Jul 17, 2017
Blitz: Evanston allocates nearly half its portfolio to long-short equity
“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…”
Jul 17, 2017 bullish
Blitz: Top long/short equity managers face high alpha prospects from ETF flows
“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…”
Jan 28, 2019 neutral
Apr 12, 2021
Liow: Post-GFC short rebate collapse raised required break-even alpha to 800 bps
“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.”
Dec 2, 2021 neutral
Cooper: Fund managers who consistently generate short alpha are exceptionally rare
“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…”
Jun 2, 2022 bearish
Drogen: Most long/short equity hedge funds gamble with beta, not alpha
“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…”
Aug 15, 2022 neutral
Aug 15, 2022 positive
Enright: Keep Gross Long Exposure Over 100% Due to Asymmetric Upside
“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…”
May 8, 2023 negative
Holding equity positions too long drives thesis creep and underperformance
“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…”
May 29, 2023 bullish
Blitz: Passive and pod shop flows create alpha vacuum for stock pickers
“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…”
May 29, 2023 positive
Blitz: 100% long by 60% short is optimal long/short equity exposure
“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…”
Oct 2, 2023 negative
Running a standalone long/short equity sector fund is extremely difficult
“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…”
Jan 15, 2024
Michelakis: Portfolio Construction Requires a Different Skill Set Than Stock Analysis
“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…”
Jan 15, 2024 negative
Michelakis: Single-Manager Equity Funds Resist Rigorous Performance Measurement
“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 …”
Jan 15, 2024 negative
Michelakis: Expanding long-short funds into long-only risks cultural dilution
“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…”
May 20, 2024 bullish
Return of Real Cost of Capital Makes Shorting Environment Phenomenal
“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…”