When Dmitry Balyasny looks back at 2017, it must be challenging to see muted investment performance and recall the risk management glory days. Balyasny, managing partner and chief investment officer at the Chicago-based hedge fund that bears his name, is considered an uncorrelated maestro. Working with then portfolio manager Colin Lancaster, the hedge fund entirely avoided the August 2015 market crash on the back of strong central bank analysis and a risk overlay strategy.[1] But now Lancaster is gone, moving to cross-town rival Citadel, hard at work building a macro team. Balyasny, who runs the Google/Amazon of hedge funds for his part, looks to 2018 and expects the portfolio structure and organization he has built to shine as it has in the past.
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Slightly positive during a strong stock market is a difficult drink for an uncorrelated manager to swallow
“We were not satisfied with 2017 performance,” Balyasny admits in a December 2017 letter to investors reviewed by ValueWalk.
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