AI Snips
Chapters
Transcript
Episode notes
Deutsche Bank's 'Other'
- Le Shrub recounts calling Deutsche Bank in 2007 about a $400 billion "other" item on their balance sheet.
- The IR person admitted no one ever asked about the balance sheet, highlighting the lack of scrutiny.
Overlooked Opportunities
- Le Shrub notes that during the Big Short, focusing on bank balance sheets provided an edge.
- He observes that deviating from the norm and looking where others aren't can reveal profitable insights.
Pod Shop Limitations
- Le Shrub contrasts "pod shops" with traditional hedge funds, noting the restrictive risk parameters in the former.
- Tight limits on drawdowns, like 2-5%, create stress and prevent substantial returns in event-driven strategies.