Behind the Balance Sheet #37 The Analyst
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Jul 18, 2024 Hedge fund giant John Armitage shares his investing journey, discusses portfolio strategy, and gives advice to aspiring professionals. Nicolai Tangen praises John's expertise. Topics include Elon Musk, AI, geopolitics, and career choices. Insightful discussions on alpha theory, stock analysis challenges, and the impact of generative AI on online advertising. Exploring fund liquidity benefits and navigating high valuation investments. Valuable advice for young professionals entering the workforce.
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Early Hedge Fund Beginnings
- John Armitage started his hedge fund with only $10 million and three people.
- Today, starting with such a small amount is impossible due to much higher infrastructure needs and market complexity.
Competition and Market Impact
- The investment management industry attracts great talent, making it harder to maintain an edge.
- Large profitable companies with huge index weightings now significantly affect active manager performance.
Stick To Your Process
- Be true to your investment process and avoid being pushed around by market fads.
- Doing something reluctantly usually leads to mistakes, so stick to your convictions.