Key Takeaways
- • Honeycomb Asset Management, founded by Point72 alumnus David Fiszel in 2016, has grown to approximately $1.5 billion in assets under management, marking significant expansion from its inception five years prior.
- • The fund delivered a 58% return in 2020, substantially outperforming the average hedge fund return of 11.6%, though year-to-date 2021 performance through June showed a 7% gain, trailing the 10% average fund performance.
- • Fiszel is positioning Honeycomb in buy-now-pay-later investment opportunities, including names like Klarna, while maintaining discipline around avoiding meme-stock exposure and speculative market phenomena.
- • The founder attributes his investment philosophy to mentorship from two prominent money managers: Lee Cooperman (Omega Advisors) and Steve Cohen (Point72), framing his approach as combining stock-picking expertise with institutional risk management discipline.
- • Honeycomb represents Fiszel's second attempt at fund management, following the closure of Rhombus Capital Management in 2007, reflecting a more deliberate and mature approach to business-building versus stock selection alone.
Summary
David Fiszel's Honeycomb Asset Management has emerged as a notable performer within the hedge fund landscape, currently managing approximately $1.5 billion in assets. Founded in 2016 by the Point72 alumnus, the firm is the product of over two decades of conceptual development and a measured approach to institutional fund management, following Fiszel's earlier venture with Rhombus Capital Management, which operated from 2004 to 2007.
The fund's 2020 performance marked a breakout year, delivering a 58% return compared to the average hedge fund return of 11.6%—a significant outperformance that drove asset growth. However, 2021 has presented a more modest performance trajectory. Through June 2021, Honeycomb returned 7%, including a 5.1% gain in June, underperforming the 10% average hedge fund return for the period, according to Hedge Fund Research data.
Fiszel's investment strategy reflects direct mentorship from two prominent figures in alternative asset management. He credits Lee Cooperman and Steve Cohen—his former employers at Omega Advisors and Point72 Asset Management respectively—as foundational influences. In his own formulation, Fiszel describes receiving his "undergraduate degree in stock-picking from Lee Cooperman" and his "Ph.D. in risk management from Steve Cohen." This dual training informs his current positioning, which emphasizes disciplined risk management alongside security selection.
Currently, Fiszel is allocating capital toward buy-now-pay-later platforms, including Klarna, reflecting conviction in fintech-driven consumer finance solutions. Concurrently, he maintains deliberate distance from speculative market phenomena, particularly meme-stock dynamics, a stance that underscores his institutional approach to capital allocation. Fiszel attributes his measured methodology to lessons learned from his first fund experience, noting that "running a business is a lot different than just stock-picking," signaling a shift from pure investment talent toward comprehensive firm-building capabilities.
The fund's 2020 performance marked a breakout year, delivering a 58% return compared to the average hedge fund return of 11.6%—a significant outperformance that drove asset growth. However, 2021 has presented a more modest performance trajectory. Through June 2021, Honeycomb returned 7%, including a 5.1% gain in June, underperforming the 10% average hedge fund return for the period, according to Hedge Fund Research data.
Fiszel's investment strategy reflects direct mentorship from two prominent figures in alternative asset management. He credits Lee Cooperman and Steve Cohen—his former employers at Omega Advisors and Point72 Asset Management respectively—as foundational influences. In his own formulation, Fiszel describes receiving his "undergraduate degree in stock-picking from Lee Cooperman" and his "Ph.D. in risk management from Steve Cohen." This dual training informs his current positioning, which emphasizes disciplined risk management alongside security selection.
Currently, Fiszel is allocating capital toward buy-now-pay-later platforms, including Klarna, reflecting conviction in fintech-driven consumer finance solutions. Concurrently, he maintains deliberate distance from speculative market phenomena, particularly meme-stock dynamics, a stance that underscores his institutional approach to capital allocation. Fiszel attributes his measured methodology to lessons learned from his first fund experience, noting that "running a business is a lot different than just stock-picking," signaling a shift from pure investment talent toward comprehensive firm-building capabilities.
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