Sun, Feb 14, 2016
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. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  2. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  3. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  4. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  5. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi