Chapter 4

Marc Lasry

An Intolerance for Losing

BEFORE MARC LASRY BUYS the debt of a troubled company, he considers everything that can go wrong. “Most investors focus on how much they're going to make rather than on how much they could lose,” says Lasry. “Our focus is on the downside.” So when his analysts do their homework, he wants to know the worst that could happen. “I don't want to hear how great the investment is. I want to hear how we could get hurt. Once we know that our downside is protected, then we look at what we can make on it.”

That's not the typical hedge fund manager's approach, but Lasry, forty-eight, took an atypical route to creating New York–based Avenue Capital Group, one of the world's largest hedge funds trading bank debt, ...

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