Whitebox Advisors' Andrew Redleaf, Avenue Capital's Marc Lasry discuss how they started and grew their firms
By Chris Clair
Monday, April 21, 2014
Building a successful hedge fund firm requires hard work, getting the most out of the people you hire, and producing better, more consistent returns than larger shops. Andrew Redleaf, founder and CEO of Whitebox Advisors, and Marc Lasry, chairman, CEO and co-founder of Avenue Capital, talked at HedgeWorld East with Rachel Minard, founder and CEO of Minard Capital about how they founded and built their firms.
"The secret to our success is organization and culture," Redleaf said, "which I thought about a lot when I established the firm and ongoing. I think any organization, but particularly a somewhat complex financial organization of any size, has to deal with the question of how do you handle more information than one human being can."
Lasry said every fund manager says he's special, unique, and different and that they don't take any risk. In reality, though, not many of them really are that special, unique or good.
"Everybody wants to run a hedge fund," Lasry said. "The dollars are great, I think you have a huge amount of freedom. But, if you want to do well you have to produce and you have to do a better job than people who are larger than you. It's a lot of time and it's a lot of work. Our edge is exceptionally hard work. It's getting to know a situation very, very well and taking advantage of situations where people need liquidity. And if you're able to do that, you'll be able to sort of do pretty well."
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