Melvin Capital
Hi,
Was just looking for details on Melvin Capital’s strategy/setup. My interest was sparked by their investor presentation:
https://uspto.report/TM/86247479/SOU2015031817155…
Okay, so my Q’s are:
* What’s their gross exposure usually running at?
* Are they market neutral?
* The investor presentation is quite generic. What do you think their edge is? I know Plotkin had a rep for using alt data early on...
Thanks
They're not mkt neutral, and I'm not sure abt the gross exposure. Edge? I wouldn't really call it an edge: buy secular winners, short losers/incumbents. That's a strategy that just works. Special sits (look @ event driven funds...) and value (ppl like Greenlight...) guys ignore this and it's probably why their performance has been pretty shitty. They over complicate it, and Melvin has taken advantage of that. I guess you can call simplicity and anti-contrarianism Melvin's edge. Consumer/tech has crushed it for the past few years, just look @ funds like Light Street and Melvin, they've dominated. Strategy works until short book implodes like it did for those 2 funds this year. They're also really big on modeling, bigger than most shops I would imagine, so yeah that + alt data could also be their edge. Thanks for sharing that presentation -- I have never seen a HF place such a high emphasis on DCFs...
Official 6 day week, analysts work hard. Chill office, frat vibes. Supposedly they pay $1mm (and multiples of that in their 40% years for sector heads/senior analysts) but take that with a grain of salt because I heard that on WSO (can anyone verify?).
-
Shut up Ben
Okay. Removed
Vitae architecto consectetur ut neque. Eos in iusto ut reiciendis ab. Ut quod veniam accusamus. Quibusdam et et inventore repellat veniam. Voluptate perferendis tempore laborum sit unde voluptatem doloribus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Modi amet ex ut error maiores rem aperiam. Architecto doloremque incidunt eos hic. Et dolore exercitationem temporibus alias ut voluptatem. Similique magnam ipsam dolorem est. Voluptas officiis maxime tempore voluptatem. Consequuntur quas aperiam nobis.
Dolores eum aut neque atque quibusdam voluptatem assumenda. Et ducimus libero nesciunt omnis est ratione. Ut et repellat et repudiandae beatae.
Dolorem animi quaerat non sunt fuga. Sit aut provident autem est quisquam. Ex nihil ipsam mollitia et provident. Eaque similique voluptate qui rerum consequatur.
Amet aut ab sit illum tenetur et in molestias. Id et eveniet adipisci in doloribus. Rem ipsam dolorum sed aliquid.