Confessions: Hugh Hendry & Tom Roderick, Acid Capitalist

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Hedge fund manager, Hugh Hendry, invites former investment partner, Tom Roderick, to dive under the hood and examine how one becomes a hedge fund manager. They revisit the summer of 2005, the S&P has been marooned for 2 years moving sideways as the economy and corporate profitability improve. What would an aspiring young manager do?

Hedge fund pirate Hugh Hendry chronicles the inner workings of the uncorrelated and legendary Eclectica Fund. Hugh's discussions with other though leaders are deployed as a hedge fund boot camp to reveal what he's thinking and why in real time. No new Hedge Fund wannabe can afford to miss the journey to the present day where Hugh reveals and expounds upon his latest macro insights. 

This week we find a rather pallid Hugh cursing his demons from the night before and his newfound love of Pickle-Ball and tequila. Tom quizzes him on why he was 75% net long and not 35% or 120% long? And how did he size risk positions? How did he seek to optimize his portfolio in a world before the rule books had been written. Was this risk taking on the hoof, a form of dopamine bingo, with creativity the deciding risk factor? Hugh and Tom reveal all.

Chapters:
00:00 Shared Confessions Acid Capitalist
05:10 Optimal Risk Sizing
10:30 Soros / Druckenmiller Lite Risk Model
14:00 Losing My Curiosity
15:15 The macro narrative of 2005
18:00 The Status Quo Changing
21:00 Dopamine Bingo - Creativity at Risk (CaR)
22:30 Eclectica Fund Attribution
28:00 Longs 2x Shorts but shorts bigger than longs..? 
30:00 2005 the year institutions crashed the Commodity scene
35:00 Not a Bull Mkt till you've had Violent, Painful Corrections

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