'Big Short' Steve Eisman: Why every sector has its own 'mafia'

Manager on the forces behind the scenes that determine markets

David Brenchley
clock • 5 min read

Steve Eisman, the hedge fund manager who called 2008's subprime mortgage crisis and was portrayed by Steve Carrell in 'The Big Short', talks to Investment Week about his new fund, TM Neuberger Berman Absolute Alpha, which launched in February 2019.

How does your fund differ from other hedge funds? It has a bit of a different structure: It is a flat fee, no carry; it provides 100% transparency of positions - you know what you own and what you are short; and it has daily liquidity - if you invest with a typical hedge fund it is annual redemption. 'Big Short' investor Eisman's fund to spearhead Neuberger Berman's UK push I am trying to minimise your cost of error - you can invest and if you do not like the results, you can just withdraw. I think most hedge funds are long-only in disguise: they tend to be very net long and they...

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