Learning from Steve Mandel of Lone Pine Capital
- 02/08/2019 – Star Stockpicker Exits the Hedge Fund Stage
Not well known outside the hedge fund industry, Mandel, 62, has generated tens of billions of dollars in gains for his clients over the past two decades and established one of the best investment track records ever.
Lone Pine’s main long-short fund has risen 14.4% annually net of fees since its inception in 1998, versus the S&P 500’s 6.6% over the same period, according to published returns from Institutional Investor. The returns are all the more impressive because the fund ran a net exposure (longs minus shorts) of about 50% to the market.
Hedge-fund managers are a fiercely competitive group, and there is no better validation than getting the praise of your peers.
“Steve Mandel is the best industry analyst I’ve ever met, who became the best long-short hedge-fund manager of his generation,” says Seth Klarman, CEO and portfolio manager of the Baupost Group.
Paul Tudor Jones, the hedge-fund manager famous for predicting the October 1987 Black Monday stock market crash, says that he feared Mandel’s investing prowess.
