A 20-year-old who dropped out of NYU says he has raised $5 million for his hedge fund

Here is the full article from Business Insider: http://www.businessinsider.com/julian-marchese-rai...
This sounds like a joke to me. This guy is presumably from a rich family and goes to NYU, and yet he could not get any real SA / FT jobs? He literally has no work experience. In addition, my experience with amateur quant investors (especially with the market we've been in for the past few years) is that they get a bloated sense of self esteem and confidence because their simple models (e.g. filter by industry, EBITDA margin, ROIC, etc., buy P/E below 12x, sell above 18x, etc.) gave them great returns, despite the fact that they have very little knowledge of the fundamentals of their investment.

Thoughts? Is he for real or just another garage band hedge fund? Anybody know him in person?

Comments (31)

 
11/21/16

the article says the "majority" came from one investor ... probably means all of it came from one investor who is a blood relative with a ridiculous amount of money

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11/21/16

BSc in Finance and Financial Management Services is managing a "quantitative multi-strategy investment" fund? lol

You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.

 
11/21/16

https://www.linkedin.com/in/julian-marchese-58495523
Business Insider profiled this guy already. This ratfucker wakes up at 11AM to run his hedge fund. I would definitely trust my money with him.

There seems to be a whole class of kids, empowered by TheStreet, Seeking Alpha, and mom and daddy's money starting "hedge funds" and investment firms. Their efforts would be innocuous if the dumbass business media didn't fawn all over them embarrass the investment industry meanwhile.

 
11/22/16

What do you mean, empowered by TheStreet or Seeking Alpha?

 
11/22/16

I'm assuming that's where he received his training from and continues to get tips from.

 
11/22/16

LOL "ratfucker" might be my new favorite insult

 
11/22/16

new bloomberg handle right there

"Look, it tells time simultaneously in Monte Carlo, Beverly Hills, London, Paris, Rome, and Gstaad." - Louis Winthorpe III

"Losers average losers." - PTJ

 
11/22/16

Nice pic of myself you got there

 
11/22/16

Not my own idea. Richard Nixon was fond of the term.

On a side note, both Nixon and his number one detractor, Hunter Thompson, have provided some of the funniest, albeit sometimes racist and homophobic (on the part of Nixon) quotes I've ever read.

Thompson:

"If the right people had been in charge of Nixon's funeral, his casket would have been launched into one of those open-sewage canals that empty into the ocean just south of Los Angeles. He was a swine of a man and a jabbering dupe of a president. Nixon was so crooked that he needed servants to help him screw his pants on every morning. Even his funeral was illegal. He was queer in the deepest way. His body should have been burned in a trash bin."

"Richard Nixon has never been one of my favorite people anyway. For years I've regarded his existence as a monument to all the rancid genes and broken chromosones that corrupt the possibilities of the American Dream; he was a foul caricature of himself, a man with no soul, no inner convictions, with the integrity of a hyena and the style of a poison toad."

"The Nixon I remembered was absolutely humorless; I couldn't imagine him laughing at anything except maybe a paraplegic who wanted to vote Democratic but couldn't quite reach the lever on the voting machine."

Nixon:

"The Peace Corps and State Department Foreign Service are cookie pushers and faggots in striped pants."

"You know what happened to the Romans? The last six Roman emperors were fags. Neither in a public way. You know what happened to the popes? They were layin' the nuns; that's been goin' on for years, centuries. But the Catholic Church went to hell three or four centuries ago. It was homosexual, and it had to be cleaned out."

"The Bohemian Grove... is the most faggy goddamned thing you could ever imagine."

"You know, it's a funny thing, every one of the bastards that are out for legalizing marijuana are Jewish. What the Christ is the matter with the Jews, Bob? What is the matter with them? I suppose it is because most of them are psychiatrists."

 
11/25/16

Hunter S. Thompson was the man

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11/22/16

"While he's in class, it can make trades that satisfy his algorithm, which can be simplified as: "If the time is X and the rate of change is Y, buy the stock."

Genius. Why didn't I think of this? Waking up at 11am is very efficient as well. Why not wake up at 4pm? Even better.

"And in the time Marchese was in meetings, class, and the dining hall, the S&P dropped 30 points and his automated program picked up 16 new positions. Out his window, the sun sets to the west of the Freedom Tower. It's just another day at the office."

The most money he's making will be for his e-broker.

 
11/23/16

There will be a time his algorithm won't work any more - could very well be in the near future. Hard times will show who is a genius and how he can deal with losses.

 
11/23/16

There are a few videos on his Website where he exsplains some of his strategies... They seem to be based on simple correlations in the markets, looks like relative value.

 
11/23/16

Buying a pair of Jordans doesn't make you a baller.

 
11/25/16

Spike Lee thinks you're wrong.

 
11/26/16

Remember reading some research behind one of his strategies. He actually showed off a backtest over a time horizon including the dot-com boom and the financial crisis that outperformed but excluded all financial and tech stocks because of "valuation reasons". Fascinating conclusion that if you predict two crises you can beat the market.

 
11/26/16

Kudos to him. If someone rich wants to throw some kid some spare change to manage, its whatever. If he's your core manager though, you're a f'king fool.

 
12/10/16

Julian is legit... his fund runs simple multi-factor models that work and are uncorrelated with each other. he's also being mentored by a very well known market wizard/ hedge fund manager... one cool thing about the fund is that the fees are linked to the sharpe ratio
dude doesn't need a degree from nyu nor SA experience...

 
12/10/16

lol i read the research he published online - that guy is full of shit.
He doesn't have a college education, and i can tell you it shows.

 
12/10/16

he was a freshman in high-school when he started blogging. his approach evolved from short-term trading to quant.

not sure why i'm defending him, this is my last word....

 
12/12/16

can you forward me anything published by him? I'm legit interested.

 
12/14/16

if he's good @ trading, he shouldnt need to manage outside money.

alpha currency trader wanna-be

 
1/27/17

So I guess he doesn't need a Bloomberg terminal or worry about transaction costs?

 
1/27/17

I guess Yahoo! Finance is free.

 
3/13/17

I know him personally (childhood friends) and can attest that he isn't from a rich family, he started investing in elementary school and received a lot of media attention for being a teenage investor. The media attention also made way for him to meet some mentors and become well connected enough to raise the $5 million (which by the way is nothing for a hedge fund let alone a startup or any type of business really). I can't really attest to his investment strategies because I'm not into that area of finance but I know he's a smart guy and has a real plan for his career. He's really not the type of person that a lot of these comments are trying to make him out to be.

 
3/19/17
 
3/20/17

Hi prospective monkey hating on people for doing things

 
4/19/17

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4/19/17

What concert costs 45 cents? 50 Cent feat. Nickelback.