Seneko

Everyone has been playing RocknRolla in Credit. Except investors. For years, investors funded the party: loose underwriting, aggressive structures, “extend & pretend”. Now the cracks are showing. And something interesting is happening. Credit is becoming one of the richest opportunity sets today. One company. One equity. Dozens of credit instruments. More dislocations. More opportunities. Oh and yes, shorting credit today offers a very different game than shorting equities: b

Why Credit is not that rosy but more importantly why you should care. If PIK, LME, AM, RR are unfamiliar acronyms to you then this is for you! The last time I felt uneasy like that was in 2007 when I learned about Countrywide’s tricks with mortgages. In this post, I describe that while the world of Credit has drastically changed over the last decade, the signs of excesses rhyme with the past.

In my discussions with investors, because they anticipate their portfolio volatility to be likely dominated by Equities, finding a source of uncorrelated equity returns has been at the fore front of their agenda. For many, 2026 will not be like 2025!   Luckily for them, it turns out that the Equity Market Neutral strategy has staged a massive turnaround over the last 5 years and what many considered boring is now becoming exciting again.

Allocators draft DDQs on the managers they invest in. For many, it’s a boring box-ticking exercise. For some, it’s a powerful way to...

Do you have the right strategy to survive the storm? Thanks to Donald, there’s no need to subscribe to Netflix anymore! If it was...

Why it is time to bet more on Divergence. This isn’t a test. It’s a stress test! The market fragility that only a few sensed at the end...

Buffett’s Timeless Principles applied to Equity Long/Short Buffett’s success has fascinated investors for decades. But what if one could capture the essence of his strategy in a hedge fund structure? In this article, I describe how a manager has used systematic investing to emulate the key principles behind one of the greatest track records in financial history. I also link back to the tips from my previous posts. And by the way, no need to drink Cherry Coke and eat Dairy

My Top 3 Tips for Selecting Equity Long/Short Managers With the new year underway, many investors have asked me how to approach the...

2024 will be remembered as the year Artificial Intelligence (AI) not only soared to unprecedented levels of popularity but also...

Finding Resilience in Alternative Markets 2022 was a horrible year! Except for Trend Followers (CTAs), who made a strong comeback by...

This post describes how I really learned risk management, namely that at the end of the day what matters are the following basic...

Finding the next Hedge Fund legend is daunting when you consider the role of luck in investing, manager dispersion and the lack of...