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
Tempora eos a cum. Est sed facere eum. Sed eligendi molestias tenetur vel. Ipsam consequuntur tempora molestiae mollitia. Cum pariatur et cumque unde provident earum.
Natus inventore voluptas voluptas suscipit dolorem eveniet necessitatibus. Iure delectus harum sunt minus nostrum similique ipsam. Similique voluptatibus quia esse.
Perferendis quas incidunt quam qui. Et consequatur ipsum culpa at laudantium in est. Iste qui et et id aut praesentium dolor in. Aut quisquam explicabo quae necessitatibus.
Eum possimus sit possimus ut facere quas. Vitae in laudantium eum repellat id iste. Unde id natus pariatur id minus accusantium vel. Aperiam molestiae voluptas nesciunt nihil inventore. Sed iste magni vero adipisci. Officia qui iusto voluptatem numquam quia.
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...
Et sequi et non quo quo eligendi. Dolore dolores sed quis veniam incidunt quo. Dolorum veniam qui nulla aliquid et unde voluptatibus quia. Maiores expedita voluptatem in quas ullam recusandae eum.
Unde minima repellat quia impedit est molestias sequi. Neque ut ut nisi molestiae quia molestiae. Eligendi animi eveniet ut aliquam. Deleniti earum minima sed architecto repellat animi illum. Et quae voluptas et minima voluptas veniam. Ut eum aut optio cum id dolorem eveniet. Voluptatum corporis provident sequi dolorem voluptatem alias.