On the occasion of International Men’s Day, we shared a collage of 4 extraordinary traders, Jesse Livermore, George Soros, Paul Tudor Jones & our own Indian Atul Suri, who changed the trading world with their amazing acumen & skills. And you guys being great followers requested us to write a blog on them which is a great honor for us to enlighten you with their information. So, sharing a brief but highlighting glimpses of their lives below starting with the legend himself who needs no introduction, The Jesse Livermore…
1. JESSE LAURISTON LIVERMORE:
Jesse Livermore (born in 1877) was an American stock trader and is considered as pioneer of day trading. One of the best-selling books Reminiscences of a Stock Operator by Edwin Lefevre is oriented around him. In his time, accurate financial statements of companies were a rare thing and getting current stock quotes required a large operation because market manipulation was out of control. Livermore used what today known as Technical Analysis as the basis of his trades which includes emotions on trading. His methods are still being studied by stock market community.
Some of his best trades includes shorting the market in the Panic of 1907, which earned him $1 million in a single day. He would’ve shorted the market further more but refrained against the advice of his mentor J.P. Morgan. He agreed and instead, profited from the rebound, boosting his net worth to $3 million.
In 1924-25, he engaged in market manipulation and made $10 million trading wheat and corn.
In early 1929, he made such a huge short position that he had to use more than 100 stock brokers to hide what he was doing. It was a swing trade which was at some showing loss of $6 million on paper. However, upon the Wall Street Crash of 1929, his net MTM was approximately $100 million. It was an event where he was blamed for the crash of market and received death threats which led him to hire armed body guards.
He lived such a lavish lifestyle as he was one of the richest people in the world at one time. But then things went bad for him until the point he couldn’t take it anymore and unfortunately, he committed suicide. Even though he was one of the richest, at the time of his death he had more liabilities than assets.
2. GEORGE SOROS:
George Soros (born in 1930) is a Hungarian born-American billionaire and philanthropist. Soros is known as “The Man Who Broke the Bank of England” because of his short sale of US$10 billion worth of pounds sterling, which made him a profit of $1 billion during the 1992 Black Wednesday UK currency crisis.
In 1970, Soros founded Soros Fund Management became its chairman. With his investment skills, he grew his fund to $12 million in 3 years, of which only a small proportion of which was Soros’s own money. He & his partner reinvested their returns from the fund and also a large part of their 20% performance fees to expand their stake. By 1981, the fund had grown to $400 million. But in the same year he faced a loss of 22% on the entire fund which led to withdrawal of some of the investors which reduced the fund to $200m. In July 2011, Soros returned funds from outside investors (valued $1 billion) due to some U.S. Security and Exchange Commission’s disclosure rules. That time his fund had averaged over 20% per year compound returns. In 2013, his fund made $5.5B ($40B since inception), making it the most successful hedge fund in history.
His performance in his Fund was extraordinary, but it’s not the reason for the limelight he has in stock market community. He became popular after the Economic crisis of 1900s & 2000s. In 1992 he built a huge short position in pounds sterling as he recognized the potential opportunity when he found out that the rate at which the UK was bought into the European Exchange Rate Mechanism was too high. By 16 Sep, 1992 (Black Wednesday), his fund sold more than $10B in pounds. When crash happened, his profit on the bet was estimated over $1B. He was named as “the man who broke the Bank of England”. His current net worth is $8.3B as of May 2020.
3. PAUL TUDOR JONES:
Paul Tudor Jones II (born in 1954) is an American billionaire hedge fund manager and philanthropist with net worth of $1B. He founded his hedge fund, Tudor Investment Corporation, an asset management firm in 1980.
He was known for his timely prediction of Black Monday in 1987, which tripled his money during the event due to large short position. He bet on the crash of the United States stock market and earned whooping $100M, which was a return of 125.9% after fees.
In 1990 he made 87.4% returns through shorting Japanese markets’ equities bubble.
He appeared in a documentary called ‘Trader’ in which he explained how he made his fortune. But as his strategies was explained in it, he withdrew it out of circulation. You might find it on YouTube (not sure). It’s worth watching.
4. ATUL SURI:
Atul Suri is well known Indian trader but unfortunately very less information about him is available on public domains as he lives a reserved lifestyle from all the media attention. I’m sharing whatever material I was able to find.
He was known as the right hand of the Big Bull of India, our very own Rakesh Jhunjhunwala until he started his own PMS service, Marathon Trends Advisory in 2017. He was an ace trader in RJ’s RARE Enterprises. According to his bio on his PMS website he has over 25 years of experience in trading and investing in Indian equities. He is also known for his skills of using volumes in trading decisions.
I have shared as much information on these legends as I could. The blog has become a bit lengthy, but it would be an insult to their achievements if I did not give justice to them by not sharing here. So, bear with it. But trust me it’s interesting and it will definitely motivate you in the long run.
Thanks for reading this. Keep growing!!
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