Maybe it’s semantics, but generally with fund allocation when you’re deploying more than 1% of your AUM towards a single thesis that’s a significant bet.
The closest equivalent to "AUM" for a company like that would be the market capitalization, not cash reserves, so over 1.5 trillion.
Then again, shareholders usually have less risk tolerance with companies than investors with hedge funds, so the two aren't really comparable either. (But I assume your 1% number is for more risk-averse funds? Hedge funds regularly make much bigger bets than that)
n2d4|2 years ago
Then again, shareholders usually have less risk tolerance with companies than investors with hedge funds, so the two aren't really comparable either. (But I assume your 1% number is for more risk-averse funds? Hedge funds regularly make much bigger bets than that)