Fri, Mar 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

De Francisci: mediocrity is highly respected in hedge fund industry, Part 1

Monday, August 04, 2014

amb
Giovanni de Francisci
Benedicte Gravrand, Opalesque Geneva:

Giovanni de Francisci runs the Petschek Family Office out of Monaco. He described his unconventional views on manager selection, the state of the hedge fund industry and investment risks using various colorful similes during a recent Opalesque TV interview with Matthias Knab. Here are some of his views.

The key to successful investing is not a steady return 12 years ago, he was dissatisfied with the single digit returns the family office was getting, even though the family, being conservative investors, did not mind. He then told them that Warren Buffett was not considered a risky investor and yet gained 12%-13%; "maybe we should be investing with him." That was when his foray into hedge fund investing started.

"A Formula 1 race car driver is not considered a dangerous driver because he drives fast, he is considered a great driver because he can drive so fast that at the same time he is not crashing," he explains.

"That is why he is able to get around the Formula 1 course and win, by going fast and not crashing. That’s the key to a very successful hedge fund manager. Today, conventional wisdom has dominated our industry, such that hedge fund managers, if they are Formula 1 racecar drivers, would be moderating their speed because investors would be saying, "the higher the return the higher the speed" demonstrates ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He