Billionaire Melvin Capital fund manager is amazing talent or not so much?

Discussion in 'Wall St. News' started by VEGASDESERT, Feb 1, 2021.

  1. VEGASDESERT

    VEGASDESERT

    The fund is averaging 30% a year until last weeks 50% loss.

    Does the theoretical equity curve below look like a godly fund manager or common
    no nothing day trader? lol.

    And this chart doesn't even include 2 and 20 fees yet. :rolleyes:

    melvin.JPG
     
    Axon and fan27 like this.
  2. Nobert

    Nobert

    Market Wizard series is full of stories of such amazing managers. Until they're no longer - amazing.

    It's a marathon in that bis, not a sprint. He should have known better.

    Maybe he took this quote from a wrong angle. Could it be, that he thought, that Dalio had Gamestop in mind ? :)
    ddd.jpg

    Maybe, he will make a comeback like Acman did, tho, who knows.
     
    Last edited: Feb 1, 2021
  3. MrMuppet

    MrMuppet

    Well..I don't think that the average IB gambler knows how hard it is to make 30% on 10+billion AUM
     
  4. its like a fat guy trying to break-dance
     
  5. Axon

    Axon

    You may be right but I imagine it's a little easier if unbeknownst to you you're taking the kind of risks that work most of the time but then end up losing 50% of that 10 billion in less than a month.
     
    murray t turtle likes this.
  6. it's obviously super easy as shown by these guys... take on a lot of risk and close your eyes... it usually works for a couple of years.
     
  7. Pekelo

    Pekelo

    They should go long on GME just to make up the loss.... :)
     
    zghorner likes this.
  8. zghorner

    zghorner

    [​IMG]
    [​IMG]
     
  9. MrMuppet

    MrMuppet


    Listen up kids:
    As per finviz.com there are 7667 listed stocks in the US. If you filter for market cap >10billion, 836 are left.
    And these are stocks that you would enter a substantial position if you decided to play.

    Let's say you want to be gambling with a little TA bullshit and a stoploss just like you guys then we would have to filter for market cap of 200b or more so that you don't have as much market impact.

    Guess how many stocks are left? Exactly 38 stocks. Pretty small shark tank, huh?

    What happened to Melvin was a black swan. A nasty one but who could have ever guessed that an internet forum orchestrated a short squeeze of these proportions?

    Do don't confuse your own incompetence with an outlier
     
    stochastix and zghorner like this.
  10. Butterfly

    Butterfly

    a lot of Hedge Funds charging 2/20 used to be 100% on APPL or GOOG. I shit you not.
     
    #10     Feb 1, 2021