At the start of my career, the hedge fund industry was dominated by Soros, Steinhardt and Robertson who were all long-term investors. Back then the only investment number that was tracked was compounded annual net returns to partners. Long and Short positions were taken individually with the goal of being profitable on both sides of the book.
Today, the industry is dominated by short-term trading, monthly volatility control, draw-downs, Sharpe ratios and computer programs. Stocks are now thought of as merely a means to perform an endless amount of statistical analysis rather than ownership of a functioning business managed, supplied and consumed by human beings. Single-alpha portfolios, massively leveraged and tightly controlled with statistical hedging are the new norm, replacing what would now be viewed as double-alpha, low leverage, un hedged strategies. Paradoxically, the new norm is considered lower in risk. Owning businesses at low to modest multiples of free cash flow and shorting businesses at high to extreme multiples of free cash flow is now considered riskier than some massively leveraged, statistical construct.
With seventeen years of hedge fund experience, I am typically viewed as a hedge fund analyst by those outside the hedge fund industry. Within the modern day hedge fund industry, I am viewed as an old school investor. In my view, my experience and skill set today is better suited for a move out of the hedge fund industry. Getting others to realize that and finding the right opportunity with the right organization, though, has been challenging.
Which lead us to the question of: Would you hire someone who has...
· Excelled at a double-alpha, market neutral strategy in 2007.
· Established and managed a long/short hedge fund with a seven-year 32% compounded annual net return to partners.
· Exceptional performance at a large hedge fund focused on fundamental analysis over a seven year period. Outstanding record of short-selling during a period of positive returns in the market.
· Performed fundamental research on long/short equities within the Global Technology sector and have traveled to China (extensively), Japan and Europe within the last year.
· Analytically skilled and detail oriented problem solver with specific expertise in fundamental research, portfolio management and developing industry contacts with demonstrated success in producing profitable long and short investment ideas in almost any market.
?
I guess the answer is no.
