Dmitry Balyasny, Founder and CIO of Balyasny Asset Management, discusses BAM's historical performance consistency when describing how the firm attracted top-tier institutional allocators.
Prediction Not checkable as stated
Multi-strategy platforms will continue consolidating market share and trading talent
“But if you look at it over five, 10, 15, twenty-year periods, I think the secular trend is going to be sustained. So if you look at the market share in terms of investor dollars, or the market share even more so in terms of the alpha pie in the markets, or the…”
Insight
Starting an independent hedge fund makes no sense 99% of the time
“It's a way to attract people who are very entrepreneurial and who are real business builders, whereas 20 years ago they probably would have just started their own fund, but now the industry has evolved to where there's so many impediments to doing that and so …”
Insight
Small independent hedge funds suffer from severe adverse selection in hiring
“They have negative hiring and retention selection because they can't compensate their teams as well. They have negative technology and data selection because you can't invest as much in that. And just the time suck of managing all that versus trading and inves…”
Opinion
Long-bias funds pose far greater dollar risk than market-neutral multi-strat platforms
“I think for some reason it gets singled out to this space, but much larger risk in dollars is the more long bias strategies that are common across other areas. So if you look at last year and you think about the meltdown in growth investing and whether that wa…”
Insight
Overcrowded trading strategies rapidly shift talent from overbid to unbid
“If you have a strategy that's done well, and everybody's making money in that strategy, the talent in that strategy tends to get bid up. Then more people build teams in that area, more people overpay for the cost of building those teams, more capital gets depl…”
Insight
Series D companies fundamentally resemble multi-billion-dollar publicly traded stocks
“So if you're looking at a private company, that's a growth company raising a series D round. Is that dissimilar from a publicly traded company with a couple billion dollar market cap that your public PMs are investing in? Most of the time, it's not that differ…”