{"id":10270,"date":"2009-04-06T00:00:00","date_gmt":"2009-04-06T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"why-hedge-fund-managers-shouldnt-lever-up","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/04\/2009\/why-hedge-fund-managers-shouldnt-lever-up.html","title":{"rendered":"Why Hedge Fund Managers Shouldn&#8217;t Lever Up"},"content":{"rendered":"<p>Howard Marks of Oaktree Capital, whatever his merits as a hedge-fund manager, is a spectacularly good memo-writer. And his <a href=\"http:\/\/www.scribd.com\/doc\/13709334\/Leverage-at-Oaktree-Lessons-Learned-032609\">latest<\/a> makes a particularly germane point:<\/p>\n<blockquote>\n<blockquote>\n<p>Once you decide to lever a fund, &ldquo;risk management&rdquo; becomes more important than &ldquo;portfolio management.&rdquo; Many more people know how to pick securities than know how to restrict a levered fund&rsquo;s risk to the amount that can be withstood. And the ability to pick securities for an unlevered fund isn&rsquo;t nearly as critical as the ability to manage risk in a levered fund.<\/p>\n<\/blockquote>\n<\/blockquote>\n<p>  <strong><a href=\"http:\/\/www.hedgeco.net\/news\/news_land.php?i=http:\/\/seekingalpha.com\/article\/129572-why-hedge-fund-managers-shouldn-t-lever-up\" target=\"_blank\">Read Complete Article<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Howard Marks of Oaktree Capital, whatever his merits as a hedge-fund manager, is a spectacularly good memo-writer. And his latest makes a particularly germane point: Once you decide to lever a fund, &ldquo;risk management&rdquo; becomes more important than &ldquo;portfolio management.&rdquo; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[37,9854,1924,8701],"class_list":["post-10270","post","type-post","status-publish","format-standard","hentry","category-syndicated","tag-hedge-fund-manager","tag-merits","tag-portfolio-management","tag-risk-management"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/10270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=10270"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/10270\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=10270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=10270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=10270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}