• Nature’s Law of PnL

  • Oct 21 2024
  • Length: 27 mins
  • Podcast

  • Summary

  • How much profit can hedge funds realistically extract from financial markets? In today’s episode, we explore the challenges of managing large pools of capital and whether there’s a natural cap on the dollar profit a fund can generate. As funds scale, the competition gets fiercer, transaction costs rise, and managers face growing pressure to maintain performance.

    Bodhi's Operational Advisor, Matt Tambelini, is joined by John Soukous, CEO of Quan Capital Advisors. With years of experience as a portfolio manager and senior leader at Wellington Management’s Global Fixed Income and Hedge Fund business, John shares his insights on the limitations hedge funds face when managing billions in assets. They dive into the psychological pressures on portfolio managers, the role of talent in driving P&L, and how top funds navigate the complexities of capacity constraints. If you’re interested in understanding the mechanics behind hedge fund profitability and the highs and lows of being in the industry, let Matt and John pour you a cup of BodhiBrew.

    Visit bodhiresearchgroup.com for more insights and to learn how we can support your journey.

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