Tips from One of the Most Successful Hedge Funds

May 29, 2017 James Heinsman Hedge Fund News

In a private First Quarter investor newsletter published by Elliot Management, five bits of advice are outlined. Billionaire Paul Singer founded the fund, which is now valued at about $33 billion.

The statement says:

“Some of these lessons needed to be actually experienced to be incorporated at a deep level in the decision making of a team, whereas others could be gleaned secondhand,” said the statement.

The following are bits of excellent advice.

•    No stock price is either too high or too low in order for it to go either higher of lower.
•    Market turns cannot be timed.
•    Large changes in market prices often happen way in advance of when the reasons for the changes become clear. By then it is already too late to incorporate the new information into one’s trading at the old prices.
•    It is extremely important to avoid significant losses. Why? To avoid a painful, or even terminal affect bad adversity has on the quality of a money manager’s decision-making abilities.
•    In order for money managers to succeed in the long term they must be able to have a wide and deep understanding about the world at large, and not just capital structures. They should know corporate business strategies and industry dynamics, which is absolutely vital to any future to the long-term success of money managers.

Elliot Management, Paul Singer,

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