Innovators, imitators, and idiots: Behind the pod shop market chaos

Detailed summary

The world’s largest hedge funds are meant to make unrelated bets across stock and bond markets. But more often than not they push in the same direction.

At a private dinner, Izzy Englander, the founder of $US100 billion hedge fund Millennium Management, was asked what he does if one of his traders falls in love with a stock and doesn’t want to sell it.

His response, according to his fund manager friend Ron Baron’s account was the following: “Well, when they go to lunch, I sell it, and when they come back, I fire them.”

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.