he's a competitive alpha male billionaire hello friends in this episode we're going deep
into the universe of hedge funds by getting to know better a certain bobby axelrod is no
ordinary billionaire he's an icon through axelrod we're going to learn about hedge fund managers
in the real world and investigate what type of hedge fund would ax capital b
if it was live today so let's start with axe's personality he remembers every detail electric
sun is controlled by kazowitz he also owns 19.3 percent of luma therm back and can
process the information like a machine he's very smart
like most headphone manager he has launched his own shop the moment i let someone in a boardroom
or a government office tell me what i can or cannot buy i may as well close the shop and i'm
not closing the shop he's an icon of the wealth of our age and he is a fraud i'd say he's not afraid
he's quite realistic as a hedge fund manager in fact he's rumored to be inspired by steve
cohen the founder of the hedge fund point 72 and owner of the new york mets in case you wonder it's
not about the looks it's probably that steve was charged for insider trading and axe is not trading
aboveboard they're meteors the only win they can live with is total how would axe capital compare
to the big hedge funds of today i googled it and the assets under management are at 10 billion
dollars that would rank as number 38 in 2020. our investors pay us a 3 management fee and 30 of
their profits and you want me to tell them we're buying some [ __ ] apple the fees are realistic
but they're unusual the norm used to be 2 and 20 and this clear trend towards lowering fees
but i'm up 32 this year which from what i know of your running height approach is 30 points better
than what you are at vista verde despite this strong performance in the hierarchy of hedge fund
he's not at the same level as kenneth here see someone like kenneth dry acid he is is
solid part of the firmament whose performance is much lower and that tells us a very important
point but i'll leave it for later now what about the strategies he's got a finger in almost every
pie he'll invest in anything longs shorts it sounds like axe capital is open to any ideas
in real life hedge funds don't have a purely opportunistic approach in terms of asset
classes axe capital mainly trades equities but not only and in practice portfolio managers
would focus on specific strategies for example steve cohen uses three strategies
long short macro and systematic so let's try to find out which ones are used at ax cap you knew
they were gonna whiff their numbers why didn't you bang the short harder he often goes short but also
owns stocks so he's probably an equity long short here they're talking about capturing a
premium from a takeover target and that would be merger arbitrage there's an episode where they
hedge the position in brazil hit by a tsunami and it's probably global macro and ben talks
about it was an event-driven strategy what have we learned about bobby axelrod the hedge fund manager
he's an over-the-top character but credible he's found these four strategies they're having a good
year the assets will soar to 13 billion based on performance and the fund will connect 300
million in management fees (mistake in the video) 960 million dollars in performance fees nice but
he's not in the firmament he is not a top top hedge fund and we haven't explained why you can
call it what you want but i call it careful risk averse we're going to dive deeper into that in the
next episode where we'll review concepts such as alpha beta and correlation i hedge my investments
i protect the downside so please subscribe and also i'm launching a course about alternative
investments it's free if you sign up early so check the link thank you for watching