Alternative thinking on the robot apocalypse, hedge fund talent, and Trump's triumph

May 5, 2016 08:37 AM

 

“It’s not easy to find great people. We whittle down the funnel to maybe 2 to 4 percent of the candidates we’re interested in. Talent is really thin.”

It’s been a tough few months for hedge funds. AIG just announced that it lost nearly $350 million in its hedge fund portfolio over the first quarter… in a portfolio that has roughly $10 billon to $11 billion. They’ve informed their funds that they plan to exit as lock-up periods expire.

In the last week, three big names in the financial industry have taken shots at the hedge fund business. Over the weekend, Warren Buffett waxed poetic about the disconnect between hedge-fund performance and the associated fees.

Third Point’s Dan Loeb predicted that that 2016 performance has been “catastrophic” and projected the early stages of “washout.”

Now, Steve Cohen is sounding off that there is a lack of talent in the industry.

 

“The proposed regulation before us today represents another step forward in our efforts to make financial firms resolvable without either injecting public capital or endangering the overall stability of the financial system.”

Fed governor Daniel Tarullo is happy that the central bank is moving toward rules that would give regulators additional time to wind down a company in the wake of the financial crisis of 2008.

This is going to take some time to digest the actual rules that they are proposing, particularly when it comes to the impact on current contracts. But the thing that really pops out is the outlandish amount of derivative exposure that the top banks face these days.

It’s stunning.

 

"Brexit could be a source of heightened global uncertainty."

Atlanta Federal Reserve President Dennis Lockhart opened up about what’s on tap for the next central bank meeting on monetary policy. While the Fed largely ignores the U.S. manufacturing recession that simply won’t go away, the central bank could use uncertainty surrounding the future of the European Union as a crutch to hold the line on interest rates.

 

“The stages of grief - yeah. The acronym for listeners is SARAH, S - A - R - A - H, shock, anger, then rejection or denial and then acceptance. And then the last one, the big H, is for help.”

Anthony Scaramucci has described his feelings about Donald Trump practically wrapping up the Republican nomination. The host of Wall Street Week and hedge fund founder opens up about his willingness to stand behind Trump this fall, despite the fact that the hedge fund industry has taken a few shots from the frontrunner.

Be sure to check out the latest issue of Modern Trader: The Issues with Hedge Funds.

Inside, you’ll see Steve Lord’s interview with Anthony and get his insights on what he thinks about the state of the sector. In addition, we tackle the regulatory efforts happening in Washington, the major trends in the business, and explore different trading opportunities in the commodity markets.

Page 2 of 2
About the Author

Garrett Baldwin is the Managing Editor of the Alpha Pages and the Features Editor of Modern Trader. An author and Baltimore native, he earned a BS in journalism from the Medill School at Northwestern University, an MA in Economic Policy (Security Studies) from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University.