Louis Bacon Has Better Things To Do Than Explain How Big Of An Idiot You Are

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At the end of each year, when the numbers are in re: which hedge funds had the best performance and, more importantly, which ones had the biggest profits, those nowhere close to the top would kill in cold blood to determine the secret to their vastly more successful colleagues' (if you can even call them that) success. The fools will assume easily replicable tactics like in-depth research and a top-notch ability to (legally!) get information first are the edge employed by firms taking home billions upon billions. The wise ones know there is more than meets the eye.

At PIMCO, for instance, a daily shimmy down the trading floor keeps the Newport Beach-based operation in the money. At Bridgewater, it's interrogating co-workers about every little trade with an intensity level not found at Guantanamo Bay. At Moore Capital it's the prioritization of Louis Bacon's time and breath. According a new profile out today by reporter Kate Kelly, the veteran hedge fund manager is loathe to waste either-- not on children trying to squeeze him for an extra twenty bucks a month, not on know-nothing investors, and certainly not on worthless traders he's already written off.

Bacon is non-confrontational. At times he has used indirect methods to get his message across, say associates and people who have worked for him. In contrast to a rival like SAC Capital founder Stevie Cohen, who is famously vocal when he disagrees with a subordinate's trade, say these people, Bacon finds a more subtle way to undo what he views as the potential damage: He sometimes retreats to his office and places an opposing trade, a tactic that hedge fund mavens call "fading" a colleague.

Yes, a kinder, gentler manager might take the time he shows you he cares by getting "vocal," but not Bacon. He stopped caring the second you started losing him money and, in the event it wasn't abundantly clear, being yelled at = still a potential "teachable moment," whereas being burned behind the scenes like this = you're a lost cause who just doesn't get it that Bacon refuses to squander one more moment on as you burn his bottom line. Call you in to have a 5 or 10 minute chat about your thought process? How about instead, you use that time to pack up your shit and hit the road.

Think clients paying 3&25 are thrown a bone? Then you'd best think again.

During meetings with analysts or even investors, say people who have attended them, Bacon, who often draws the blinds in his private office, frequently turns to his lieutenants to answer questions, often sitting silently through the presentations.

That's right, because, as previously stated, he doesn't waste his breath on those who haven't demonstrated to him they're worthy and you? Are simply a leach on his P&L until proven otherwise. If that seems harsh, just know that 1) he does it not be cruel but to keep the money train on track and 2) no one, not even those related by blood, get a free pass.

One longtime assistant negotiates annual spending allowances with the elder of his children individually, say people familiar with the matter. Once they've agreed on a number, the assistant invites the child in for a sit-down meeting with his or her father, during which Bacon usually signs off on the terms.

Signs off, but doesn't comment, natch. Now, in the event he deigns to utter a single word in your direction? You've either done something very, very right or he figured out the creative accounting you used on last year's allowance balance sheet and you should get out of town, NOW.

A secretive hedge fund legend prepares to surface [Fortune]

Related

Louis Bacon Recruits Brother To Have Tough Conversations With Employees Re: The Fact That They No Longer Work At The Firm

One thing you may or may not know about hedge fund manager Louis Bacon is that he likes to keep his human interactions to a minimum. It's not a personal thing, just people in general thing. He doesn't like 'em and he doesn't want to talk to or look at 'em. For example, rather than taking five minutes to tell a subordinate he disagrees with a trade idea, Bacon has been known instead to "retreat to his office and place an opposing trade, a tactic known as 'fading' a colleague." Clients are treated similarly ("During meetings with...investors, Bacon, who often draws the blinds in his private office, frequently turns to his lieutenants to answer questions, often sitting silently through presentations") and if you thought that being, say the fruit of his loins meant special treatment, you were sorely mistaken ("One longtime assistant negotiates annual spending allowances with the elder of his children individually...Once they've agreed on the number, the assistant invites the child for a sit-down meeting with his or her father, during which Bacon usually signs off on the terms"). So it probably did not come as much of a surprise when LB hired his brother, the improbably named Zack Hampton Bacon III, to speak with a dozen or so members of the staff re: security waiting to escort them out of the building. Moore Capital Management LLC, the $15 billion hedge fund run by Louis Moore Bacon, cut 10 to 15 investment jobs as it restructures one of its equity teams, according to three people with knowledge of the matter. The portfolio managers and research analysts were let go on Sept. 11, said one of the people, who asked not to be identified because the information is private. Patrick Clifford, a spokesman for New York-based Moore, declined to comment. “Apart from a few hedge funds, it’s not that typical to see a large reduction in headcount in the industry,” said Ronen Schwartzman, founder of Ten Capital Advisors LLC, a New York- based firm that advises clients on investing in hedge funds. “Performance must be having an impact.” Bacon, 56, hired his older brother, Zack Hampton Bacon III, in February to oversee strategic planning, a person briefed on the matter said that month. Bacon told clients last month that he planned to return $2 billion, or about 25 percent of his main fund, to investors, saying it may be too big for him to generate returns in line with historic profits as “liquidity and opportunities have become more constrained.” On the bright side, no one was "sprayed in the face" with lead pellets, so not all bad. Moore Said to Reduce Positions Amid Equity Restructuring [Bloomberg] Related: Louis Bacon Has Better Things To Do Than Explain How Big An Idiot You Are

Great News: Hunting Guest Of Louis Bacon Not Permanently Blinded By Bullets To The Face

His throat and arms, also hit, are okay, too. The chairman of auction house Sotheby’s has been shot in the face during a grouse shoot. Henry Wyndham would have been blinded had he not been wearing glasses when the accident occurred last Monday, the first day of the grouse shooting season. The Old Etonian was standing at his post – referred to in the shooting world as a grouse ‘butt’ – when a neighbouring gun was accidentally fired towards him, spraying shot in his arm, throat and face. Mr Wyndham was airlifted to hospital from the Scottish moor where the incident took place. He was treated for 52 lead pellet wounds. The accident took place on a hired estate on a shoot organised by American hedge-fund manager Louis Bacon, 56. Sotheby’s Chairman Henry Wyndham Shot On Grouse Moor [Bloomberg] Sotheby's chief airlifted from grouse shoot after being blasted by 52 pellets [DailyMail]