Taconic Capital
0 statements across 0 episodes · 4 bullish · 1 bearish · 1 people on the record · first statement Nov 21, 2022 by Frank Brosens · said 3 times in 1 episodes since 2022 · across every show →
Mentions by year
brought up most by Ted Seides (2), Frank Brosens (1)
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Everything said about Taconic Capital, oldest first
Nov 21, 2022 bullish
Nov 21, 2022
Nov 21, 2022 positive
Brosens: Taconic founders capped equity below 20% and zero out upon retirement
“Neither Ken nor I really right from the start took as much as 20% of the economics. There was a large percentage of economics available for the people that really drove the profitability. In addition, they knew that when Ken and I eventually retired, our econo…”
Nov 21, 2022
Brosens: High-volatility risk arbitrage requires dollar hedging over share hedging
“If you hedged share for share, you were frequently vulnerable to the dollar spreads widening because both companies would double. So both companies double, the percentage spread stays the same, the dollar spread doubles. So you needed to be more closely dollar…”
Nov 21, 2022
Brosens: Taconic targets single-digit losses in crashes via monthly stress tests
“The philosophy of the firm from the inception has been to, in a big dislocation, keep losses to single digits, and we literally have a stress test that goes through the equivalent of an 87 crash and assure ourselves every month by going name by name, portfolio…”
Nov 21, 2022 positive
Brosens: Managing partner capital drives tighter risk discipline than upside-only fees
“The second aspect of it, and I think this was really important and something that we tried to Bring to Taconic was the fact that at Goldman, it was the partner's capital. It wasn't other people's money. And that drove a very different philosophy with respect t…”
Nov 21, 2022 negative
Brosens: Eat-what-you-kill compensation incentivizes undermining colleagues
“If you were sitting next to someone and you were getting paid purely as an eat what you kill system, you not only have no interest in whether or not the guy sitting next to you makes money, you actually want them to do poorly because if they do poorly, you get…”
Nov 21, 2022 positive
Brosens: Broad economic distribution among partners attracts superior talent
“If we create a firm where we distribute the economics pretty broadly, Amongst all the partners, we'll be able to attract and retain a level of talent that we won't be able to do in a firm where we take most of the economics.”
Nov 21, 2022
Brosens: Taconic has an 'anti-Goldman clause' diverting 30% to charity if sold
“So we put in a clause which has been Referred to by one of our investors as the anti-Goldman clause, where if the firm ends up either going public or selling at some point down the road, 30% of the economics effectively gets carved out and goes to Ken's and my…”