Matt Levine’s Money Stuff: The Hedge Funds Are Hiring

Hedge fund competition

The basic thesis of the big multistrategy multimanager “pod shop” hedge funds is that investing talent is real, identifiable and scarce. There are people who are reliably good at buying stocks that will go up and selling stocks that will go down; they have an investing process that works, so if you give them a billion dollars to manage they will earn steady market-beating returns. The big hedge fund firms are essentially in the business of finding those people; they have a investor hiring process that works — they’re “a massive filter of talent” — so they ...