Key Insights from Real Vision’s Interview with Investing Titan Dmitry Balyasny

Real Vision CEO Raoul Pal spent 70 minutes with the elusive legend of the hedge fund world, Dmitry Balyasny. Here are a few insights from their conversation.

For hedge fund giants, Dmitry Balyasny is about as unattainable as they come. He simply doesn’t do interviews, preferring to stick to trading and managing his fund, Balyasny Asset Management (BAM). Journalists simply can’t get him on the phone – let alone in front of a camera.

That’s why we at Real Vision were so honored when Dmitry agreed to be interviewed by our CEO, Raoul Pal. Pal got to spend 70+ minutes with this hard-to-reach investing giant, who gave Raoul an inside glimpse of the hedge fund world from its very top.

Balyasny gives Pal the full suite of his investment philosophy: his views on idea generation, asset allocation, position sizing, and risk management. He shares the methods he uses as a trader, as well as the founder and CEO of BAM, which runs over $10 Billion of institutional money. Balyasny, who runs a multi-strategy book across many different funds, discusses the role of global macro investing within other strategies such as long/short and risk arbitrage. Pal himself is a macro investor so, as someone who can “speak the language,” he was able to elicit responses and engagement from Balyasny in a way few can.

Personally, I learned a great deal from this interview, and I have little doubt that Real Vision members will as well. I found particularly interesting Balyasny’s emphasis on the importance of stress testing, and his views on how the resurgence of retail trading has impacted the investment landscape. Here are a few additional moments from the interview you won’t want to miss:

Balyasny on the bifurcation between work-at-home stocks and the “old guard” companies (financials, industrials, and retail) – and the opportunities that might materialize should this dynamic reverse.

Balyasny on the importance of sizing big on high-confidence trades – and why he tends to “make more on my winners”

The interview drops tonight (October 2) at midnight. I hope you enjoy the piece as much as I did.