Himanshu Gulati, founder of Antara Capital, discusses dynamic risk management and asymmetric trade structuring with Corbin Capital Partners CIO Craig Bergstrom.
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“Since our inception example, if we have a short stock position, we buy calls against it because we don't want to be short squeezed out. If we are doing something in the options market, everything's always capped so we can make sure we understand what our downside is to that point.”
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More from Himanshu Gulati
Insight
Gulati: A 90% investment win rate means you are taking improper risk
“When you're right, 90% of the time, you're probably not taking the right risk because you're very correlated or tied to the market, unless that's what you're looking to do. Our view is you need to be right a little more than 50%. I think it's in the 65 to 70% …”
Himanshu GulatiNov 11, 2021▶ 20:18Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
Insight
Gulati: Holding small portfolio positions causes death by a million paper cuts
“Having a lot of small 25, 51% positions is usually a way to not generate returns, and also you end up losing, I feel like it's death by a million paper cuts.”
Himanshu GulatiNov 11, 2021▶ 25:51Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
Insight
Gulati: Hospitality and entertainment post-COVID margin expansions are largely permanent
“Those companies generally were able to reduce their cost structures materially during COVID and because they had to in order to survive. Will some of those costs come back? Sure. But a lot of them are gone forever. So these companies have significantly higher …”
Himanshu GulatiNov 11, 2021▶ 30:24Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
Insight
Gulati: Running risk as sole decision-maker differs fundamentally from team investing
“The one thing, Perry was a team-based approach, and I do think it's important to run risk on your own, be the sole trigger puller, the portfolio manager. It's very different than running capital within a large organization, from my perspective.”
Himanshu GulatiNov 11, 2021▶ 15:00Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
Opinion
Gulati: The ability to cut risk quickly is lacking across the industry
“Being able to cut risk and move on
Is one of those traits that's often talked about, but lacking in a lot of our industry.”
Himanshu GulatiNov 11, 2021▶ 18:34Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
Insight
Gulati: Alpha is fundamentally driven by correct conviction-based position sizing
“I'm a true believer that it's all about position sizing and getting that correct. And that's how you generate alpha.”
Himanshu GulatiNov 11, 2021▶ 20:52Himanshu Gulati – Antara Capital (Manager Meetings, EP.19)
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