Theory into practice

Former Fidelity US manager John Muresianu launched a hedge fund, Lyceum Capital, on 1 October. Although time will tell whether he will be successful, Muresianu has several traits, as well as a compelling track record that should ensure his success.

Muresianu prefers to short baskets of stocks as opposed to individual stocks as 60% to 70% of the move of an individual stock relates to sector factors.

He believes most managers lose money on their shorts and that stocks are prone to manipulation '