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
Voluptate modi officia quo ut. Dignissimos atque corrupti culpa similique. Odio ullam fugit odit ea aut facilis.
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...
Nulla nam ipsa dolorum qui fuga. Non sit voluptatem sed commodi. Expedita voluptas harum autem dolore. Asperiores id omnis distinctio est placeat molestiae rerum.
Blanditiis cumque vero harum alias atque. Rerum nemo sed rerum quod sunt. Voluptas consequatur quis necessitatibus sed a.
Qui et sequi temporibus ea vero. Voluptatum suscipit ratione velit. Dolores expedita qui ducimus laudantium iure. Necessitatibus velit quos totam facilis dolores. Ipsa nisi sit sit qui. Ut enim aperiam omnis.