Long/Short Funds Tend to be more 'Marketing of Beta', not 'Alpha' Businesses – Jim Chanos

Long/Short Funds Tend to be more 'Marketing of Beta', not 'Alpha' Businesses - Jim Chanos by TheLongShortTrader

Straight from the Horse’s mouth (i.e. Jim Chanos):

I view macro and short selling as skill-based or alpha businesses, whereas equity long/short hedge funds tend to be more of a “marketing of beta” business. I am always amazed that investors will  pay 2 and 20 for a manager that is always net long.

I have been saying that for 20 years. It is interesting because I run an alpha-based business and I  am more sensitive to it than others. I sit on investment committees and I see it as an investor  who advises these funds. When I ask why a lot...

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