Capital Allocators – Inside the Institutional Investment Industry

Dmitry Balyasny – Multi-Strategy Platform at BAM (EP.341)

29 snips
Oct 2, 2023
Dmitry Balyasny, the founder and CIO of Balyasny Asset Management, offers a wealth of insights into the multi-strategy hedge fund landscape. He shares his journey from a novice trader to a seasoned investment leader, emphasizing the importance of risk management and talent acquisition. The discussion navigates effective strategies for portfolio construction and the challenges of recruiting top talent in a competitive market. Additionally, Dmitry explores the evolving dynamics of investor relationships and the future of multi-strategy investing.
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ANECDOTE

Early Trading Experiences

  • Dmitry Balyasny's early trading attempts were disastrous, losing all his commissions.
  • He persevered, answering a newspaper ad for Schoenfeld Securities, which sought traders without preconceived notions.
ADVICE

Initial Trading Focus

  • Define a narrow set of trading parameters when starting.
  • Gradually expand as you achieve consistent success within those initial constraints.
ANECDOTE

Bread and Butter Trades

  • Balyasny's early bread and butter was short-term trading, dividing the day into morning and afternoon segments.
  • Mornings focused on reversal trades, while afternoons emphasized momentum trading.
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