Michael Nery ’95 has joined the Board of Directors of The Leather Factory. They report that:

Mr. Nery’s firm manages Nery Capital Partners, L.P., an investment fund that purchased Leather Factory shares in a private transaction announced in September. His prior experience includes securities analysis at Fidelity Management and Research Co. in Boston and later co-management of a Denver-based hedge fund. Mr. Nery is a graduate of Williams College.


1) To have your own hedge fund at age 30 is an impressive achievement.

2) Nery seems to have done quite well over the last few years, at least as of this past spring. His 3 year Sharpe ratio is 0.8. (A Sharpe ratio is, more or less, the return in excess of your benchmark (high is good) divided by the volatility of that return (low is good).) Anyone with a Sharpe ratio above 0.5 — and a minimal ability to raise assets — will soon be getting a lot of calls from the nice folks at the Climb Far campaign.

3) Alas, the world of finance, or at least the subpart of that world concerned with asset management, is viciously zero sum. My (real) job is to try to take money away from people like Nery, just as his job is to do the same to me. We are all trying to buy low and sell high. Fortunately, Nery seems to operate in a different corner of the financial world that I do, so I can safely wish him nothing but the best.

4) I wonder if Nery thinks, as I do, that the Williams Economics department really ought to offer a course on accounting. Not doing so is, roughly, analogous to the English department declining to teach people how to write well.

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