multi-strategy hedge funds

“Those large hedge fund, sort of multi-strategy hedge funds, many of them have delivered significant beta, whether it's equity beta, or credit beta, or other sort of momentum type exposure. And that is not something we want to pay for.”

“I think a good multi-strat manager can earn six or seven percent, and that's nowhere near what it returned in the nineties, early 2000, but that might be pretty good this year.”

“So we've even said for some investors, maybe you think about having some of the more conservative multi-strat hedge fund managers and think about it as a fixed income proxy.”

“The lower the volatility in the world, the more capital they're deploying. And that was a very interesting concept for us. A concept to that was an eye opening experience. And more importantly, probably now it is dictating a lot of the flows and the performanc…”

“If you work at these shops, it took me a while to figure out, but almost all of them Are 90, 95% of the time long short-term momentum, which is in English is long something that is working right now. And when you think why they have to do it, if you're so leve…”

“If you look today and see how many of those funds are still around, very, very few of the single manager funds are still around. But the multi-strats we invested in at the time, most of them are around.”

“So it's much more than just hiring people and giving them capital, although that's obviously a significant and important part of it, but a lot of it is you're really trying to partner with business builders in these different areas that bring a lot of that Tho…”

“Most of the time what you're looking at, if you're looking at a predicted beta or a predicted vol number, is a one standard deviation, 68% confidence interval, best guess average of what the next three to six months are going to look like if they looked like t…”

“Those large hedge fund, sort of multi-strategy hedge funds, Many of them have delivered significant beta, whether it's equity beta or credit beta, and that is not something we want to pay for.”

“Generally speaking, in these models, you make more money in a high-vol environment, but you lose money in the move from a low-vol environment to a high-vol environment.”

“There's two clear industries that have moved from the banks to the private sector. One is the private credit industry is effectively taking what the banks are doing and doing that off asset manager balance sheets. One is the market making industry, taking what…”

“There's more math than that, but let's just say, simply speaking, in a multi-strategy firm, if you have enough diversification, You can run, as most of these multi-managers have done, a five vol to make a 10% net return.”

“A lot of these firms are effectively core satellite. It was a great PM that started a business, then learned that they could raise more money, and they started diversifying. But at the end of the day, the whole ecosystem is a lead actor and supporting actors.”