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Are successful hedge fund managers financial engineers? Does one need theoretical expertise and financial engineering skills to be a successful hedge fund manager?

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Comments (5)

  • Gray Fox's picture

    I'm pretty sure Carl Icahn or George Soros haven't had a math class since the start of the Cold War and are doing pretty well

  • Markov's picture

    Even the successful quant hedge funds are often (most of the time?) run by people not that knowledgeable in financial theory/engineering. Instead, they're often excellent statisticians.

  • STIBOR's picture

    Most hedge fund managers - on a percentage basis - are complete jokes. Read Hedge Fund Mirage. It's a great book about how on a net basis hedge fund managers drain value from the system. 98% of being successful in hedge fund management is having pedigree, an ability to state an investment style/thesis in a ridiculously articulate way, and looking/acting the part. On the whole, hedge fund managers do NOT add value and shouldn't be revered like they are.

    Most hedge funds just on a proportional basis, whether they add value or not, are not run by financial engineers. The smart business people hire the math geeks to do that bullshit for them. Rare exceptions are Simons and David Shaw.

  • lasampdoria's picture

    Define successful

    "Those who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."- Benjamin Franklin

  • In reply to lasampdoria
    tiger2012's picture

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