As a teenager, Michael Steinhardt read stock charts and hanging around brokerage offices. He graduated from high school at age 16 and flew in Wharton School Of Finance for three years, graduating in 1960.
He began his career on Wall Street in research and analytical positions at Calvin Bullock mutual fund and brokerage firm Loab Rhoades & a CA.. In 1967, Steinhardt, along with two other rising stars in the field of investment, Howard Berkowitz and Gerold Fine, formed a hedge fund company based in New York, which they called Steinhardt, Fine, Berkowitz & Co. Under the leadership of Steinhardt, the company has continually been successful in identifying macro market moves and then building their strategies for trading of securities in these situations. In 1979, Berkowitz and Fine left the partnership, then the company was renamed Steinhardt Partners.
Steinhardt Partners achieved record performance that still stands out on Wall Street: 24% combined average annual returns – more than twice that of the S & P 500 – for over 28 years. What is more amazing is that Steinhardt has made this with stocks, bonds, long and short options, currencies and time horizons ranging from 30 minutes to 30 days. There were few investment instruments on which Michael Steinhardt not mastered a skill.
Steinhardt spectacular career ended in 1995 when he decided to close the business after his fund has a return of 21% over last year. Before that in 1994 his fund suffered a loss of 30% when interest rates have moved against him. Having dealt with the business he devoted to charitable activities and served as a board member of institutions such as New York University, the University of Pennsylvania and Brandeis University. He has also served on the board of Wisdom Tree Investments, New York-based company Asset Management, which sponsored ETFs.
Steinhardt had the prospect of long-term investor, but for the most part is invested as short-term strategic trader. He bet on the direction of movement with the help of an eclectic mix of securities and was supported by a team of traders and analysts. As mentioned Above emphasizes movements–type macro asset allocation, of which he collected the profits. Charles Kirk, publisher of the report The Kirk Report, acquire these “rules of investing” from a Steinhardt speech in June 2004, which show that even a hedge fund investor with big ambitions to be the ground of the earth:
– Make mistakes in the beginning of his life. The more tough lessons early, the less mistakes you will make later.
– Always earn a living doing something you love.
– Be intellectually competitive. The key to research is to assimilate as much data to be the first to feel the significant change.
– Make decisions even with incomplete information. You will never have all the information you need. What matters is what you do with the information you have.
– Always trust your intuition, which resembles a hidden supercomputer in the mind. It can help you do the right thing at the right time if you give it a chance.
– Do not make small investments. If you are considering putting money at risk, make sure that the reward is high enough to justify the time and effort you put into the investment decision.