Julian Robertson: Hedge Funds Face Most Difficult Era

The video discusses the nature of hedge funds, suggesting they might be better termed as investment partnerships. It highlights the challenges hedge funds face in volatile markets, especially with low interest rates creating bubbles. The discussion covers the difficulties in achieving performance targets like the 2 and 20 fee structure, and the impact of short squeezing and quantitative strategies. The video concludes with a reflection on the evolving fee structures and the challenges in maintaining performance.

What alternative name is suggested for hedge funds in the first section?

• Asset management companies

• Risk management firms

• Investment partnerships

• Financial cooperatives

What is one of the main challenges for hedge fund managers discussed in the second section?

• Managing client expectations

• Expanding into new markets

• Dealing with market failures

• Predicting interest rate changes

According to the second section, what is a common strategy used by some to challenge hedge funds?

• Squeezing shorts

• Investing in bonds

• Diversifying portfolios

• Buying long positions

What is the traditional fee structure for hedge funds mentioned in the third section?

• 1 and 10

• 3 and 30

• 2 and 20

• 4 and 40

What is suggested about the future of the 2 and 20 fee structure in the third section?

• It will become more rigid

• It will remain unchanged

• It is likely to drift away

• It will be replaced by 3 and 30