Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital

Masters in Business

Bloomberg

Business, Entrepreneurship, Investing

4.4 • 2.2K Ratings

🗓️ 2 May 2025

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

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Summary

Barry speaks with Sander Gerber, Hudson Bay Capital CEO and CIO. Hudson Bay is referred to only as a global, multi-strategy investment firm.

In 2008, Mr. Gerber developed the Gerber Statistic, which was accepted as an innovation complementary to his own work by the late Dr. Harry Markowitz, the Nobel Prize-winning economist and father of Modern Portfolio Theory (MPT). The Gerber Statistic is utilized by Hudson Bay to identify the co-movement of financial assets, enabling early detection of concentration risks and insufficient diversification.

Mr. Gerber began his investment career in 1991, as a member of the American Stock Exchange working as an equity options market maker. In 1997, he founded Gerber Asset Management to develop and engage in proprietary investment strategies. In late 2005, Mr. Gerber and Yoav Roth co-founded Hudson Bay Capital, which concentrates on generating positive returns while maintaining a focus on risk management and capital preservation.

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1:16.4	Strap yourself in for another good one, Sandra Gerber, CEO of Hudson Bay Capital.
1:23.2	What a fascinating background he has.
1:26.8	Starting in philosophy and ending up on the floor of the American Stock Exchange as an equity options trader, that experience, those two things combined to really create a kind of unique perspective on the world of markets, on the world of risk, and on the
1:46.5	world of models. You know, I've used the George Box quote a million times. All models are
1:53.3	wrong, but some are useful. And the way Gerber goes about using models is very much along the George box lines, which is not only are we going to assume that models are wrong, but we want to create our own models to be able to identify when they're going to be at a great variance to what's going on in reality and then how to position ourselves to take advantage of it.
2:19.3	They're less directional traders than they are arbitrageurs. Hudson Bay Capital
2:25.3	runs a dozen different strategies and they're all quite fascinating.
2:31.3	Everything from Risk Arb to private credit and real estate in the first quarter of
	...

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