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From Kirsten Bischoff, Opalesque New York:
Focusing on risk management, lets you "live to fight another day," advises Bill Collins, Founder, CIO and CEO of event driven fund Brencourt Advisors during the latest Opalesque TV interview. With over three decades of experience behind him, including growing his first hedge fund to over $1bn in a decade, Collins also sites asymmetrical trades as an important part of a portfolio, as well as the ability to shift focus as market cycles change.
Fighting another day is so important in the financial markets, because as Collins points out, in finance, market booms closely follow market busts. "If you survived the downturns – for example the crash in 1987, then 1988 was a record year. If you survived the bond market blowing up in May of 1994, then 1995 was a record year." Even most recently, 2008 marked Collins only down year ever, followed by 2009 – his best year ever.
An approach to managing a hedge fund firm that entails looking at the business "as a motion picture, not a snapshot," has also allowed Collins to evolve the focus of his strategy along with opportunities arising in various market cycles. Starting Brencourt in 2001 with $500m in assets and a focus on event driven investing, his team soon expanded into credit due to the opportunity and risk reward set they were seeing in the markets. That wider scope of focus saw the...................... To view our full article Click here
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