|Gad Grieve was a hedge fund manager between 2002-2008|
He managed Finvest Asset Management, an asset management firm which attracted high net worth individuals and institutional investors.
The original hedge fund clients, wealthy people, were initially attracted to star managers who were able to achieve outstanding performance during the 1980s and 1990s when the Standard & Poor’s 500 was compounding at 15% or better annually.
When the technology bubble burst in 2000, the focus of the industry began to change. There was a greater emphasis on protecting capital in difficult markets rather than maximizing profits in good times. Additionally, management fees also began to rise and hedge funds changed character. The early funds were organized to produce exceptional performance and they were willing to take higher than normal risk to achieve their objectives. The market was rising almost every year so the risk insensitivity was not critical back then. This changed after 2000.
With higher fees hedge funds became real businesses and maintaining the asset base became an important objective. As consequence, hedge funds became concerned with risk control and their new institutional clients encouraged this attitude. These investors were willing to experience underperformance when the market was doing well in exchange for asset protection in declining periods.
Volatility became a key area of client focus and monthly drawdowns were carefully scrutinized. Hedge fund managers were willing to give up performance points on the upside to achieve low volatility.
|Gad Grieve campaigned against Apartheid prior to Nelson Mandela's release.|
2) Grieve was active in South African politics in the late 1980s. During this time he was a fierce advocate against Apartheid. He was active in several support groups, aimed at resolving the Inkhata- ANC conflict in KwaZulu Natal. As a student at the University of Cape Town, he participated in the Free Mandela campaign and other anti-Apartheid initiatives. Grieve was a member of the Democratic Party (now the Democratic Alliance), but had several close relationships with members of the ANC, which at that time was banned.
The African National Congress (ANC) is the Republic of South Africa's governing social democratic political party. It has been the ruling party of post-apartheid South Africa on the national level, beginning with the election of Nelson Mandela in the 1994 election, the first after the end of apartheid.
Today, the ANC remains the dominant political party in South Africa, winning every election since 1994. Jacob Zuma, the incumbent head of state and ANC leader since 2007, was replaced as the ANC's chief by South Africa's deputy president Cyril Ramaphosa on 18 December 2017. Founded on 8 January 1912 by John Langalibalele Dube in Bloemfontein as the South African Native National Congress, its primary mission was to give voting rights to black and mixed race Africans and, from the 1940s, to end Apartheid.
The ANC originally attempted to use nonviolent protests to end apartheid, however, the Sharpeville massacre resulted in the deaths of 69 black Africans and contributed to deteriorating relations with the South African government. On 8 April 1960, the administration of Charles Robberts Swart, banned the ANC and forced the party to leave South Africa.
After the ban, the ANC formed the Umkhonto weSizwe (Spear of the Nation) to fight against apartheid utilizing guerrilla warfare and sabotage. On 3 February 1990, State President F. W. de Klerk lifted the ban on the ANC and released Nelson Mandela on 11 February 1990.
On 17 March 1992, the apartheid referendum was passed by the voters removing apartheid and allowing the ANC to run in the 1994 election. Since the 1994 election the ANC has performed better than 60% in all general elections, including the most recent 2014 election.
3) Gad Grieve completed his national service in the South African Navy and was a trained diver. During his service in the Navy, he was active in several off-shore rescue missions in the Mozambique Channel. Prior to 1993, South African national service was obligatory for all South African white males. Due to the small size of the South African Naval division, less than five percent of an annual intake, were allocated to the Navy. A much smaller percentage were accepted to the Diving Section, which was known for its grueling training program and high fall-out rate, often referred to as the Navy Seals division of the South African military.
Prior to Grieve's involvement in the Asset Management firm Finvest in the 2000s, he employed his energies in managing a Family Office for several high net worth families. During this time he focused his work on a number of investment portfolios and asset classes.
4) At Finvest, Gad Grieve focused his skills on trading and managing equity options. Due to increased liquidity and higher trading volumes, U.S. equity options became attractive to investment managers after the turn of the century. Grieve's primary option strategy was writing out-of-the-money put options. This is commonly referred to as selling volatility. To mitigate the risk component of the strategy, he bought long put options and ETFs which had exposure to VIX, while he shorted SPY. VIX tracks volatility in the market and spikes in periods of market stress. Volatility is also a key component in option pricing and effects the value of options.
5) Gad Grieve was active in a wide range of charitable organizations, mainly focusing on promoting Jewish interests. Despite his participation in Wall Street, which is often associated with indulgence and opulence, Grieve was know for the modest lifestyle he led. Subsequent to the Bernie Madoff debacle and the era of heightened regulation which changed market dynamics, like many other hedge fund managers, Grieve closed his firm and announced his departure from investment service industry. Due to the losses which his firm experienced as a result of the Crash of 2008 and changes in the market, Grieve's personal wealth was obliterated. He is no longer active in the field of investment. It is rumored that he has an interest in multi-media, however this could not be confirmed.