Leo was not using financial leverage the way multi strat funds do. Yes, he had some options exposure, and there was some natural gross exposure from hedges, but that is very different from running a structurally levered book. The returns were not manufactured by leverage. When your top 4 positions are up more than 10x, the driver is stock selection, concentration, and being right early, not financial engineering.
@RnaudBertrand@TimurNegru@RnaudBertrand I always suspected you were a blue blood. Growing up with the oligarchs in Lausanne and now you're the one who turned out interesting. The system works in reverse!
@jamesthomason This is false. At launch, Leo, Carl and Nick had capital from Power 5 university endowments and one of the world’s largest oil traders. Leo literally published his OpenAI playbook in 2024. You didn’t even need to invest with him. You just had to follow it.
Any profession where people have decent odds of peaking early (i.e. 20s) can exact a big emotional toll on the unprepared.
Professional athletes, hedge fund guys, etc.
@CliffordAsness Cliff - You are a legend. Your genius paid for my second house. That said, I do remember a stretch when even your relatives stopped taking your calls after you shorted those names. You were ultimately right, but Thanksgiving had to be awkward.
@PepInvestStocks@aleabitoreddit@PepInvestStocks Why are Towa’s earnings down so much 26/25? Where are the huge earnings revisions we see at Hynix, Samsung and Micron? We need to see the earnings revisions that we see in the other chip stocks.
Making a multiple expansion bet in a cyclical is how you get carried out. You can still make money with memory stocks, but the trade is is now earnings revisions, not multiple expansion. AI may be secular, but memory is still cyclical. The market will not put a peak multiple on peak earnings.
Why would my agent access my data through a Salesforce API or MCP toll booth forever? Eventually CRM earns commodity database margins or I move my data somewhere cheaper. I do not need their GUI anymore, where it takes 17 clicks to get what I need. I only care that my agent retrieves my data.
Please consider Mr. Ghalibaf in your institutional investor vote this year in categories commodity research and portfolio strategy.
https://t.co/pzlfN4dyGv