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He is the Chief Investment Officer of Asset and Wealth Management at Goldman Sachs. He’s a member of the management committee. He co-chairs a number of the asset management investment committees. So we really had to work through that over a number of years. What can I say about Julian Salisbury? We love it.
If they are cutting due to a panic (think March 2020) or due to a recession (like in 2001 or 2007) potential trouble could indeed be lurking. But as we’ve been writing all year, we do not see a recession coming and with inflation back to manageable levels, there was simply no reason to have interest rates up over 5%. on average.
That’s the biggest yearly profit scored by a hedge fund manager ever, beating John Paulson’s 2007 $15 billion record. The top 20 managers of 2022 made gains of $22.4 billion net of fees, according to a report published by LCH Investments that is cited in the article, which also estimates that managers garnered a 3.4%
I wasn’t that typical person that did a number of, you know, internships during the summer, had that …. At Citi, in 2007, fantastic timing, you take over as Head of Structured Solutions. And so, 2007, I came over to Citi. RITHOLTZ: There’s always risk involved with counterparties …. BITTERLY MICHELL: Always risk.
Graham Foster] : 00:02:54 That was a number, that was number theory, pure number theory. And whether it’s all numbers or even numbers. Some people look at a casino as entertainment and hey, we’re gonna spend X dollars, pick a number, 500, 2000, whatever it is. Number one, longevity.
Or at least the top, pick a number, 30, 40%. SEIDES: I know back then, the premier job in asset management was to run Fidelity Magellan. Are most people better off in an index fund than playing with an active manager, be it mutual fund or high fee hedge funds? This is the summer of 2007. RITHOLTZ: 2007.
But there’s also a lot of, like at Wittel, you know, I was at Wachtel in 2005 to 2007, so really near the peak of a big merger’s boom. It was derivatives math, it was like working with the traders on like riskmanagement. Like that solves like a number of issues. And I love that. I thought that was really fun.
I found this to be just a masterclass in everything you need to know about distressed credit investing, private credit, the role of the economy, the fed interest rates, inflation, bottoms up, credit picking, and how to manage a firm and a fund in light of just massive dislocations in your space, as well as the overall economy.
BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest, Ken Kencel of Churchill Asset Management, CEO, Founder, President. And then I left there and joined a number of my colleagues from Drexel and launched a business that as it turns out, was pretty much a carbon copy of the business we have today.
In the short run, there can be distortions in public market valuations as we saw in 2001 and we saw prior to that in 2007, and prior to that in 2000, in ‘99. You know, we bought Hilton in June of 2007. We find great management teams. There’s some like riskmanagement things that you always need to be mindful of.
Blueprint worked with Parker from when Parker ran strategies as a hedge fund and has been a believer in the importance of trend and managed futures for a while. When they talked about portfolio allocations he said they want to have enough in managed futures to have an impact on the portfolio. Calmar captures risk of significant losses.
So we could construct trades that had very, very low premiums to sell this volatility to, to basically join the consumer on their side of the trade, which is in essence buying insurance on, on the bonds that were exposed to these great risk. You’re actually crunching a lot of numbers. And this is proprietary data.
And I was kind of intrigued and so I said, can we discuss it, and he laid it out on a conference table and I said, what’s this number? And then I said, what’s this number down here, and he said, this is last year’s earnings. And that number was $160 million. BROWDER: I just gone the riskmanagement committee.
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