Lars Kroijer

Last updated
Lars Kroijer
Lars Kroijer.png
NationalityDanish
Education Harvard University
Harvard Business School
Occupation(s)Author, Hedge Fund manager
Website Kroijer.com

Lars Kroijer is a Danish entrepreneur, author, and former hedge fund manager. During his career, he worked for HBK Investments and Lazard Freres, before co-founding a London-based hedge fund. Holte Capital was founded in 2002 and operated until 2008 when capital was returned to investors during the 2008 financial crisis.[ citation needed ]

Contents

Kroijer has released two financial books as an author. The first came in 2010 titled, Money Mavericks: Confessions of a Hedge Fund Manager. The book studied the options available to investors, drawing the conclusion that many hedge funds' fees were too high. Kroijer released his second book in 2013, Investing Demystified. The book received positive reviews from both MoneyWeek and also The Morning Star.[ citation needed ]

Education

Kroijer graduated in economics magna cum laude from Harvard University, before receiving an MBA from Harvard Business School. [1]

Career

In his early career, Kroijer worked at the London office of HBK Investments, focusing on special situations investing. He also worked in New York City at the hedge fund SC Fundamental and as part of the investment banking division of Lazard Freres. [2] In 2002, Kroijer and his co-founder Brian O'Callaghan founded Holte Capital, a London-based hedge fund. [3]

During an interview with CNBC, Kroijer explained that his hedge fund operated in London for a total of five years, before deciding at the end of 2007 to return capital and continue investing with his own money. [4] [5] After his hedge fund ceased operations, he released his first book in 2010, Money Mavericks: Confessions of a Hedge Fund Manager.

Kroijer released his second book in 2013, which was titled, Investing Demystified. The book led Kroijer to be interviewed by the CFA Institute to discuss the opinions he shared on indexing in his 2013 book. [6] Around the same period, he was also interviewed by BFM following the release of his book. [7]

In November 2013, Kroijer appeared on The Motley Fool's Money podcast. [8] Around the same time as the release of his first book, Kroijer's media appearances all centred on how hard it was for investors to gain an edge, when compared to retail funds. [9] He also became a financial writer for a number of media outlets, such as the CFA Institute [10] [11] [12] and also became a media commentator on financial issues. [13]

Kroijer suggested in 2013 that during the financial crisis, he lost £10 million in a single day. On reflection, he has suggested that there were a number of things investors should avoid doing. This included suggesting that he believed the primary cause of underperformance in trading was investors attempting to do something different and that many of them thought, "they can beat the markets". [14]

Kroijer founded AlliedCrowds in 2015, a crowd funding platform aimed to assist people who want to directly invest in aid projects. He stated in a BBC World News interview that the demand and growth of roughly 100% a year came because there is greater accountability through crowdfunding, when compared to traditional aid funding. [15]

The success of his book Investing Demystified, led Kroijer to guest speak and launch a number of online resources to assist people new to investing. [16] [17] This work led him to notably teach a free course on Udemy, [1] along with other online seminars. [18] [19]

Money Mavericks: Confessions of a Hedge Fund Manager

In 2010, he released his first book, Money Mavericks: Confessions of a Hedge Fund Manager. [20] In the book, Kroijer studies the loosely regulated fees charged by investment firms. He theorizers that fees across the industry are too high, when compared to the risk and return many hedge funds make. [21]

A New York Times review stated that Hedge funds typically charge an annual management fee of 2 percent and a performance fee of around 20 percent, meaning investors keep 80 percent of the gain in this instance. Kroijer concluded that often hedge funds will benefit from a bull market, if the market grew by 10% then the customer would receive 7% in profits from most hedge funds. If this was compared to a Vanguard fund, which would also benefit from the bull market, the difference in profits would be substantial as the customer would keep a higher percentage of profits. [21] A second edition of the book was released in 2012. [22]

Investing Demystified

Kroijer published Investing Demystified in 2013. [23] [24] The book studies a number of options when it comes to investing. [25] During an interview with Morning Star, Kroijer said that too many sole investors were trying to beat the market, when in reality all they were after was a good return on their investment. While speaking with Morning Star, he also studied the costs of an active fund compared to a passive fund for someone using the fund to save for a pension. [14] Kroijer regularly discusses the term "financial edge" in the book, speaking about how the average investor struggles to beat the top indexes available to consumers. [26]

Kroijer went on to surmise that the average citizen in the United Kingdom making £50,000 a year and saving 10% of that year between the age of 25 and 67. That money would then be put into equity markets. [27] If historical equity market data is used throughout this period, he then studied the difference at retirement in the fund and also the costs of both an active and passive fund. Kroijer concluded in the interview, the difference at retirement for that person between having picked a passive fund; that's called the world equity index and an active fund that tracks the same thing, the difference in fees will amount to almost £300,000 in today's money. So, provocatively, I say that's the equivalent of seven Porsches. [28]

The book received mainly positive reviews in the financial press. In late 2013, the Morning Star included the book in their "ten must read" books over the Christmas period. [29] Investing Demystified was also selected by MoneyWeek as part of their list for the best financial books in 2013. [30] MoneyWeek again selected the book for its "best books on investing for beginners" section in 2016. [31] A second edition of the book was released in 2017, which was ranked in the top 10 investing books by Financial Expert. [32] [33]

Related Research Articles

A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.

A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe, and the open-ended investment company (OEIC) in the UK.

<span class="mw-page-title-main">Alfred Winslow Jones</span> American investor, hedge fund manager and sociologist

Alfred Winslow Jones was an American investor, hedge fund manager, and sociologist. He is credited with forming the first modern hedge fund and is widely regarded as the "father of the hedge fund industry."

Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds. Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value. It is also a key figure with regard to hedge funds and venture capital funds when calculating the value of the underlying investments in these funds by investors. This may also be the same as the book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share.

Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index. An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.

A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.

<span class="mw-page-title-main">Bridgewater Associates</span> U.S. based investment management firm

Bridgewater Associates, LP is an American investment management firm founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundations, foreign governments, and central banks. As of 2022, Bridgewater has posted the second highest gains of any hedge fund since its inception in 1975. The firm began as an institutional investment advisory service, graduated to institutional investing, and pioneered the risk parity investment approach in 1996.

David Frederick Swensen was an American investor, endowment fund manager, and philanthropist. He was the chief investment officer at Yale University from 1985 until his death in May 2021.

Jack Schwager is a trader and author. His books include Market Wizards (1989), The New Market Wizards (1992), Stock Market Wizards (2001) and Unknown Market Wizards: The best traders you've never heard of (2020). He is a well-known author, fund manager and an industry expert in futures and hedge funds. He's published a number of books, such as Market Wizards.

<span class="mw-page-title-main">Citadel LLC</span> American hedge fund and financial services provider

Citadel LLC is an American multinational hedge fund and financial services company. Founded in 1990 by Ken Griffin, it has more than $63 billion in assets under management as of June 2024. The company has over 2,800 employees, with corporate headquarters in Miami, Florida, and offices throughout North America, Asia, and Europe. Founder, CEO and Co-CIO Griffin owns approximately 85% of the firm. As of December 2022, Citadel is one of the most profitable hedge funds in the world, posting $74 billion in net gains since its inception in 1990, making it the most successful hedge fund in history, according to CNBC.

Joel Greenblatt is an American academic, hedge fund manager, investor, and writer. He is a value investor, alumnus of the Wharton School of the University of Pennsylvania, and adjunct professor at the Columbia University Graduate School of Business. He runs Gotham Asset Management with his partner, Robert Goldstein. He is the former chairman of the board of Alliant Techsystems (1994–1995) and founder of the New York Securities Auction Corporation. He was a director at Pzena Investment Management, a firm specializing in value investing and asset management for high net worth clients.

A performance fee is a fee that a client account or an investment fund may be charged by the investment manager that manages its assets in addition to its management fee.

<span class="mw-page-title-main">Ray Dalio</span> American investor and hedge fund manager (born 1949)

Raymond Thomas Dalio is an American investor and hedge fund manager, who has served as co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York.

A portfolio manager (PM) is a professional responsible for making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. Clients invest their money into the PM's investment policy for future growth, such as a retirement fund, endowment fund, or education fund. PMs work with a team of analysts and researchers and are responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly towards an investment fund or asset management vehicle.

<span class="mw-page-title-main">Investment fund</span> Way of investing money alongside other investors

An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to:

Thomas Belesis is an American banker and was the founder and CEO of John Thomas Financial, a New York City-based financial services company.

Lars Jaeger was a Swiss-German author, entrepreneur, financial theorist, and alternative investment manager. He published on the history and philosophy of science, technology, and has in the past been an author on hedge funds, quantitative investing, and risk management. In his widely read blog as well as other media he frequently wrote on issues concerning scientific developments, new technologies, and their meaning for society. He was the author of many books on various topics. In 2014, Jaeger published a universal history of science, and in September 2016 a book on the interplay of science and spirituality. His next book "Supermacht Wissenschaften" outlines scenarios of mankind's technological future. His 2018 book "The Second Quantum Revolution - From Entanglement to Quantum Computing and Other Super-Technologies" deals with the latest quantum technologies. His 2019 book "Mehr Zukunft wagen" is a confrontation with the impending technological upheavals that lead to what Jaeger calls “The Human Crisis”. In 2020 he published "Sternstunden der Wissenschaft. A Success Story of Thinking" in which he describes the triumph of science on the basis of four essential intellectual virtues. His 2021 book "Ways Out of the Climate Catastrophe - Ingredients for a Sustainable Energy and Climate Policy" provides an outlook on a possible climate-friendly economy of the future. In 2022 Jaeger published two books: 1. "Emmy Noether - Her rocky Path to the top of Mathematics" and 2. "The Stumbling Progress of 20th Century Science - How Crises and Great Minds Have Shaped Our Modern World". The first gives a biography - readable also for non-mathematicians - of the greatest female mathematician in history. The second books describes the revolutionary development of ALL sciences from around 1880 to 1950. Two more books are in the process of being published.

Steven Edward Drobny is an American hedge fund advisor and published author. He is the founder of Clocktower Group, a consulting and investment advisory business focused on fundamental discretionary global macro and commodity hedge fund strategies. Drobny is the author of The Invisible Hands: Top Hedge Funds on Bubbles, Crashes and Rethinking Real Money and Inside the House of Money: Top Hedge Fund Traders on Profiting in the Global Markets

<span class="mw-page-title-main">Cantab Capital Partners</span> Hedge fund based in Cambridge, England

Cantab Capital Partners is a hedge fund based in Cambridge, England, co-founded by Dr. Ewan Kirk and Erich Schlaikjer. Cantab operates quantitative funds using computer models to drive investment decisions. As of Feb 2015 Cantab had $4.5 billion in assets under management, after launching with $30 million in 2006. The firm takes its name from Cantabrigia, the medieval Latin name for Cambridge. It is regulated in the UK by the Financial Conduct Authority. Cantab Capital Partners was acquired by GAM in 2016 and is since part of GAM Systematic.

Michael Edward Platt is a British billionaire hedge fund manager. He is the co-founder and managing director of BlueCrest Capital Management, Europe's third-largest hedge-fund firm which he co-founded in 2000. He is Britain's wealthiest hedge fund manager according to the Forbes Real Time Billionaires List, with an estimated wealth of US$15.2 billion.

References

  1. 1 2 "Lars Kroijer bio". Udemy.
  2. ↑ "Lars Kroijer". InformIT.
  3. ↑ "The Hedgeweek Interview: Lars Kroijer, Founder, and Portfolio Manager, Holte Capital Limited: The right balance between returns and risks". Hedgeweek. July 3, 2006.
  4. ↑ "How to invest without speculation". CNBC. November 4, 2013.
  5. ↑ Marr, Andrew (September 27, 2010). "Start of the Week". BBC Radio 4.
  6. ↑ Ortel, Will (October 10, 2013). "Meet The Hedge Fund Manager Who Asks: Why Are You Not Indexing". CFA Institute.
  7. ↑ "Investing: Got Edge?". BFM TV. November 7, 2013.
  8. ↑ Bennallack, Owain (November 5, 2013). "Transcript: The Edge-less Investor". The Motley Fool.
  9. ↑ "Transcript: The Edge-less Investor". Interactive Investor. November 5, 2013.
  10. ↑ "Lars Kroijer". CFA Institute.
  11. ↑ "Have You Got an Edge Over the Markets?". CFA Institute. November 15, 2013.
  12. ↑ "Can You Outperform the Market? It's Expensive to Find Out". CFA Institute. November 26, 2013.
  13. ↑ "Fake bank accounts, mortage discrimination, NISAs and debt letters". BBC Radio 4. July 5, 2014.
  14. 1 2 Cook, Holly (December 17, 2013). "3 Mistakes Investors Make". Morning Star.
  15. ↑ "AlliedCrowds CEO Lars Kroijer featured on BBC World News - Crowdfunding and Nepal". BBC World News. June 25, 2015.
  16. ↑ Powell, Robin (October 11, 2016). "Investing Demystified - Lars Kroijer". Evidence Investor.
  17. ↑ Powell, Robin (November 10, 2016). "Do you have an edge over the market?". Evidence Investor.
  18. ↑ "Lars Kroijer - Seminar". DIY Investor. June 14, 2016.
  19. ↑ "This former hedge fund manager reveals how you can invest for life in five quick videos". Monevator. August 22, 2016.
  20. ↑ "Big Is Beautiful, Small Is Stressful". Forbes . May 18, 2010.
  21. 1 2 Raghavan, Anita (November 8, 2010). "A Change of Heart for a Hedge Fund Manager". NY Times.
  22. ↑ Kroijer, Lars (2012). Money Mavericks: Confessions of a Hedge Fund Manager (2nd ed.). ISBN   978-0273772507.
  23. ↑ "New CEO at Microsoft". BBC World Service. February 5, 2014.
  24. ↑ "Lars Kroijer on having a market edge: an excerpt from Investing Demystified". Abnormal Returns blog. May 8, 2014.
  25. ↑ Bankers, Michael (November 25, 2013). "A Solid Investing Book By A Hedge Fund Manager That Slams Hedge Funds". Business Insider.
  26. ↑ "Edge over the markets and do you have it?". Reuters. June 2, 2014. Archived from the original on November 7, 2017.
  27. ↑ Jamieson, Bill (December 23, 2013). "Bill Jamieson: How to earn cash for Seven Porsches". The Scotsman.
  28. ↑ Cook, Holly (December 16, 2013). "Fund Fees Equate to 7 Porsches". Morning Star.
  29. ↑ "Essential Christmas Reading for Investors". Morning Star. December 20, 2013.
  30. ↑ Somerset Webb, Merryn (December 23, 2013). "The pick of this year's financial books". MoneyWeek.
  31. ↑ Partridge, Matthew (September 3, 2016). "The best books on investing for beginners". MoneyWeek.
  32. ↑ Kroijer, Lars (2017). Investing Demystified: How to create the best investment portfolio whatever your risk level (2nd ed.). ISBN   978-1292156125.
  33. ↑ Oates, Simon (October 20, 2019). "The 10 Best Investing Books". Financial Expert blog.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.