D1, Hedge Funds Face a Reckoning as Hot Bet Melts Down

The video discusses the challenges faced by hedge funds using private company stakes as collateral for borrowing. As valuations decline, funds like D1 and Tiger Global face potential losses. The video explores the exposure to illiquid assets, leverage, and the practice of side pocketing. It also covers how funds mark and value investments, with some marking quarterly. Despite challenges, macro and multi-strategy funds show success due to diversification and market-neutral strategies.

What are the implications for investors when hedge funds side pocket their investments?

What strategies are some hedge funds employing to navigate the current market conditions?