
Scaling up and meeting the
Godfather
Scaling up
The large inflow of capital came with its own set of problems.
Practically speaking, Holte Capital, like most hedge funds, accepted
subscriptions on a monthly basis. So with this very large subscription,
we were basically managing $15 million on the 31st
of the month,
then managing $40 million when we turned up for work the following
morning. With more capital, we went from having bought very few
securities to a position where we had to put $25 million into the
market over a couple of days.
A larger amount of money did not mean that we were going to
invest ...