Invest Like The Best
Episode 342 A Primer on Multi-Strategy Hedge Funds
Invest Like The Best

Episode 342: A Primer on Multi-Strategy Hedge Funds

Invest Like The Best

Episode 342

A Primer on Multi-Strategy Hedge Funds

Will England is the CEO and Co-CIO of Walleye Capital. We cover the mechanics and complexity behind the multi-strategy model, the importance of finding managers with aligned incentives, and how to instill a culture of performance at a firm.

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(00:01:41) - (First question) - His fascination with Robber Barons

(00:03:08) - He explains the style of investing he has built at Walleye Capital   

(00:07:10) - The importance of scale and what it means for firms like this 

(00:11:20) - A breakdown of the component parts of a 15% return structure

(00:15:15) - His advice to new portfolio managers trying to succeed with long/short investments

(00:19:42) - His reaction to an efficient market hypothesis   

(00:25:52) - He tells us what happens above the individual manager level

(00:28:01) - The universe of talented people behind the business

(00:33:45) - The backstory of Walleye Capital and why he chose Minnesota    

(00:40:56) - He discusses the felt experience of being at Walleye versus other firms 

(00:45:44 - Whether he identifies more as an entrepreneur systems builder or as an investor

(00:48:23) - What he says about the half-life of successful quantitative strategies  

(00:52:22) - A breakdown of style allocations and the percentage of managers within each 

(00:54:49) - How he determines how much leverage to use and how to be great at applying it 

(00:58:18) - How the firm handles tough investment periods

(01:00:53) - How he knew Citadel wasn’t taking down gross during the GameStop short

(01:02:10) - What he looks for when hiring a portfolio manager

(01:04:56) - His philosophy on performance and how he blends that into his firms' culture 

(01:07:40) - Inspiration he’s taken from the All Blacks team

(01:09:44) - Addition aspects of the firm he believes are important

(01:12:05 - Historical finance pioneers that inspired him 

(01:14:26) - The kindest thing anyone has ever done for him

 

 

A Primer on Multi-Strategy Hedge Funds

Introduction

Patrick
My guest today is Will England, the CEO and Co-CIO of Walleye Capital. Walleye is a multi-strategy hedge fund headquartered in Minnesota that manages around $5 billion today. Our conversation is a primer on multi-strategy hedge funds, which have become a force in markets through the success of firms like Millennium, Citadel, Point72 and Balyasny.

We discuss the operational complexity behind the model, which managers best fit this type of investment style and what happens in stressful events like the GameStop short squeeze in early 2021. We also talk about performance culture, the All Blacks and Will's experience as a U.S. National Team rower. Please enjoy my great conversation with Will England.

From Robber Barons to the Pod Model

Patrick
So Will, maybe we can begin by you telling me why you're so interested in robber barons.

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