How does Schooner differ from what one might describe as a “traditional manager”?
It is interesting, because as much bad press as hedge funds get, the truth is that the people running hedge funds have done a fairly good job at risk management, while the traditional asset managers have not. You can look at it this way, historically traditional asset managers could lose money in an up year and generally they would stay in business. At the same time, if that happened to a hedge fund, it was a sure bet that they would have to shut down due to redemptions. Traditional managers have generally been very dogmatic, they have one set of investment principles and they will go to their deaths following those principles, even when the market tells them not to. In the end not only do they end up hurting their portfolios, but they may also bring down their clients along the way. Hedge funds have been a bit more opportunistic. When something is working, they do it. When it stops working, it is time to find something else that works. Hedge funds have gotten a bit of a bad rap as of
