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
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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?).
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Shut up Ben
Okay. Removed
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