Obsessing Over Tails, Black Swans Pays Off
Found via ValueWalk.
When Alan Howard set off for a business trip to India as a young Salomon Brothers bond trader in the late 1980s, colleagues advised against drinking local water. When he got back, the buzz on his trading desk was about the huge tab Howard had run up buying cases of Evian water, according to a person who worked with him at the time.
The London native joked that he not only didn’t drink from the tap, he used the imported bottled water to bathe, shave and wash his hair.
Today, the co-founder of the $32.6 billion hedge-fund juggernaut Brevan Howard Asset Management LLP still makes it his business to keep out of harm’s way. From Howard’s trading desk in Geneva, former colleagues say, he obsesses daily about fat- tail risks, black swans or the mere possibility that his economic outlook may be wrong.
………………..
Related previous post: Brevan Howard capitalises on turmoil
- Leon Cooperman, Howard Marks On Investment Strategy
Link to video: Leon Cooperman, Howard Marks on Investment Strategy Sept. 22 (Bloomberg) -- Leon Cooperman, chairman and chief executive officer Omega Advisors Inc., and Howard Marks, chairman and co-founder of Oaktree Capital Management, talk about...
- The Buffetts On Charity, Succession, And Tv (video)
Found via the Corner of Berkshire & Fairfax. Oct. 22 (Bloomberg) -- Berkshire Hathaway chairman/CEO Warren Buffett, board member Howard G. Buffett and Howard W. Buffett, executive director at Howard G. Buffett Foundation, talk with Betty Liu about...
- Learning To Love Volatility – By Nassim Taleb
Several years before the financial crisis descended on us, I put forward the concept of "black swans": large events that are both unexpected and highly consequential. We never see black swans coming, but when they do arrive, they profoundly shape our...
- Howard Buffett To Be Profiled On "60 Minutes" This Sunday
Thanks to Will for passing this along. Howard Buffett, the son of Warren Buffett, says his dad isn’t surrendering his post atop Berkshire Hathaway “until he’s buried in the ground.” That morbid assessment is included in a profile of the younger...
- Brevan Howard Capitalises On Turmoil
Brevan Howard, the world’s largest macro hedge fund, has made close to $1.5bn over the past three weeks on the back of turmoil in the global markets. In a month in which equity markets worldwide have seen declines of more than 10 per cent, the gain...