Capital Allocators – Inside the Institutional Investment Industry Greg Lippmann – The Big Short and Structured Credit at LibreMax (Capital Allocators, EP.270)
Sep 12, 2022
In this engaging conversation, Greg Lippmann, co-founder and Chief Investment Officer of LibreMax, shares his journey from the subprime mortgage crisis to building an $8 billion asset management firm. He discusses the intricacies of structured products and his unique investment strategy. Greg reflects on his Hollywood portrayal in 'The Big Short,' his challenges transitioning from banking to entrepreneurship, and the evolution of the financial landscape, all while navigating the complexities of risk and return in structured credit.
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Reactions to the Short
- Lippmann encountered varied reactions to his subprime short thesis, from skepticism to blind faith.
- Some focused too narrowly on the worst assets, limiting potential gains.
From Obscurity to Fame
- Lippmann's transition from obscurity to fame happened quickly after the subprime short's success.
- Being portrayed by Ryan Gosling added to the surreal experience.
Holding Positions
- Maintaining positions is harder in hedge funds due to investor redemptions.
- Lippmann's bank position offered more control despite daily liquidity pressures.
