Sundheim: Managing risk after a position moves destroys capital
Dan Sundheim · Dan Sundheim of D1 Capital on the art of public market investing · Oct 22, 2025 · at 32:52
Dan Sundheim explains his risk management philosophy regarding shorting following the January 2021 GameStop retail squeeze.
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“Risk management cannot happen after the fact. Like, anything you do after the fact is not risk management. It's actually just destroying capital. Risk management has to happen before the fact. Meaning, like, you size these positions so that, like, When it goes up, you don't have to cover.”
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