CorpGov and the Palm Beach Hedge Fund Association hosted a fireside chat with hedge fund veteran Charles Gradante. Mr. Gradante, who recently attracted 100s of thousands of views of his controversial comments at the 2021 Palm Beach CorpGov Forum, discussed the recent market volatility, the role of naked shorting, its regulatory implications, the role of market makers, balance sheet strains at broker-dealers and the GameStop Corporation/AMC Entertainment Holdings, Inc short squeeze one year on. The live event featured CorpGov Editor-in-Chief John Jannarone in a moderated video session lasting approximately 45 minutes and including a Q&A with the audience.
Messrs. Gradante & Jannarone discussed:
- The GameStop squeeze one year on
- Naked shorts and regulatory implications
- The role of market makers and broker-dealers
- Potential balance sheet strains at market makers and broker-dealers
About the Speaker:
After a successful career at Citigroup, Mr. Charles Gradante joined Drexel Burnham Lambert in 1986 and directed the firm’s efforts in Europe which led to his position as CEO of the failing Chelsea National Bank for which he engineered a turnaround and sale. He subsequently became a partner of the Hennessee Hedge Fund Advisory Group, then a spinoff of E.F. Hutton and later co-founded a wholly-owned private company (Hennessee Group LLC), and the Hennessee Hedge Fund Index (the first of its kind) providing hedge fund research to clients. The Hennessee Group LLC managed $1.6 billion. Not long afterwards, in the wake of the collapse of Long-Term Capital Management, Mr. Gradante repudiated public perception of the hedge fund industry as “ruthless risk takers threatening the stability of capital markets” when he testified before the House and the Senate in 1998 and again in 2004. In 2007, Charles predicted the subprime mortgage meltdown, which triggered a global financial crisis. He continues to manage money today in a private fund.
Alan Hatfield, Director of Research