Two years later, it became the biggest hedge fund globally, managing over $1 billion in assets. He realized that since Treasury bills paid 3%, he could borrow the money so the cost for a futures contract would actually be just 2%. He also knew that the professor was addressing the risk of putting an entire investment in one commodity while it could actually be spread over many. “I would learn through my own testing and data analysis that over time, that diversified commodities futures are no riskier than stocks,” he explained. HCM’s team of experienced professionals focuses on providing holistic and comprehensive wealth management services to individuals, families, and businesses.
- He has not written any books, but he was interviewed in Market Wizards.
- His father, who had not graduated from high school, was a partner in a small bedspread maker.
- Hite also believes that it is important to understand the markets, and to take a long-term view on trading rather than focusing on short-term profits.
- Throughout his career, he has developed an impressive portfolio of investments that includes commodities, stock indices, bonds, and currencies.
- HCM also provides services related to insurance, philanthropy, and other related areas.
Larry Hite’s early life and career
In 2010, he merged it with International Standard Asset Management, led by the former chairman of ED&F Man. Hite was born in 1941 in Brooklyn to Jewish parents in a working-class neighborhood. His father, who had not graduated from high school, was a partner in a small bedspread maker. Hite was blind from birth in his left eye and had such poor vision in the right that he could barely make out the “E” at the top of the eyesight chart.
FAQ about Larry Hite
In 1637, tulips in Holland traded for 5,500 florins and then crashed to 50, a 99 percent loss. Well, you might say, Trading was relatively new then; these people were primitive; capitalism was still in its infancy. So you go to 1929 and find a stock like Air Reduction which traded at a high of $233 and after the crash fell to $31, a decline of 87 percent. OK, you might say, the Roaring ’20s were crazy times, but now things are surely different. One single trade should never “make or break” your trading career. Overall, Larry Hite has provided invaluable insight into the world of trading and the markets.
Larry Hite: Interview With Billion Dollar Hedge Fund Manager
Throughout his career, he has developed an impressive portfolio of investments that includes commodities, stock indices, bonds, and currencies. Larry Hite’s risk management philosophy involves playing a defensive game. He emphasizes the importance of assessing and respecting risk, stating that the first question in trading should be about potential losses rather than potential gains.
What’s more, in 1987 — the year synonymous with a 20% market crash — he earned 13%. This is a huge philosophy for him, and to him, it applies to every aspect of life, not just trading. In recent years, Hite has diversified into real estate, buying buildings that are nearly fully-rented and pricing units at 10% less than the market. In 2000, Hite decided to manage his leave to manage his own money and formed Hite Capital.
His use of mathematics and computer algorithms in trading has become widely accepted and has revolutionized the way traders approach the markets. Hite has also been a prolific author and lecturer on the use of quantitative strategies in trading and investing. Hite’s success in trading enabled him to quickly build up a large and loyal following among fellow traders. His hedge fund was one of the first to be publicly traded, and it was one of the earliest to achieve global recognition.
He is also known for his philanthropy, having made significant donations to educational and medical causes. Larry Hite is an experienced investor and has achieved significant success in the financial services industry. He is a pioneer in quantitative investing and is known for developing innovative trading strategies.
Rob Hanna – Quantifiable Edges – Trading Strategy And Market Analysis
His parents tried to correct it with glasses, but he could still barely read or write anything. Regardless of his bitbuy review elite track record, Hite is incredibly humble and not afraid of being wrong. That’s why he has an exit strategy in place before he even places a trade. Click on this link to watch this wonderful interview with a grandmaster of systematic trend following. He is the founder of Hite Capital Management and is widely credited with being one of the earliest adopters of quantitative trading techniques.
Hite’s success allowed him to amass a large personal fortune, and he remains one of the most successful hedge fund managers of all time. Hite was one of the earliest practitioners of managed futures, an investment strategy that involves trading futures easymarkets review contracts across a range of markets. He developed a computer-driven trading system that allowed him to identify and capitalize on short-term trends in futures markets.
He learned to “poker-face bluff my way through much of my early life,” which led to a brief career as a method actor. That experience helped him understand the different types of personalities he would work with in business. Through the application of Hite’s own proprietary trend-following strategy, his firm was able to garner 30% average annual compounded returns from 1981 to 1988.
Career
Larry has partnered with International Standard Asset Management (ISAM), where he created a multi-strategy platform of fund of managed accounts and liquid hedge fund strategies. Hite’s tenacity and stoicism drove him to succeed despite difficult circumstances. As a testament to this notion, his firm — Mint Investment Management Co. — was the first hedge fund to hit $1 billion in assets under management, with Hite steering the ship. Hite also shared his views on the markets, noting that he believes that the markets are constantly changing and evolving. He believes that it is important for traders to be flexible and adjust their strategies to adapt to changing conditions.
The firm’s services include portfolio management, asset allocation, estate planning, tax planning, and retirement planning. HCM also provides services related to insurance, philanthropy, and other related areas. The trick to amassing wealth, Hite said, is to bet big (but not one’s shirt) on stocks or futures that have minimal risk but great potential. He calls this using asymmetrical leverage, and he developed ways he describes in the book to assess where to make these critical investments. So if Hite’s strategy is so foolproof, why doesn’t everyone do it? A big part of that stems from his approach being the exact opposite of the ones used by more traditional investors.
Call options are contracts to give the buyer the right, but not the obligation, to actually make the purchase at a specified price in a certain period. Near the end of high school, he was about to be sent to a trade school instead of college because of his poor grades. A perceptive examiner gave him an oral instead of a written test, which revealed that he had very high math reasoning skills, having had to do math in his head all his life. He was accepted at the New York University School of Commerce, the only college that would allow him in, though he had no real interest in business, so he took the minimum number of courses. Larry was very candid in this interview and you can see that even at 79 years young, and decades in the markets, he’s still very passionate about investing and the markets. He peppers his responses with his life stories to emphasize points, which makes for a very entertaining interview.
