Might as well make it official and say I have left the HF business to pursue other interests on good terms and performance numbers. We all go through a period of self-reflection (usually annually around bonus season) and after several cycles I've decided now was a good time for me to exit. I'm not getting any younger.
I probably top ticked the market when I actually decided to walk away and while it's extremely tempting to get back into the game during this volatility I remind myself I have other long-term personal investments & goals to work on. I would not forgive myself if I didn't pursue them no matter how financially lucrative buyside is.
Please feel free to remove my hedge fund status here lol since I will now be a part of the peanut gallery looking in.
It has been a fun journey and love investing. I'll invest again at some point - but under a different investment vehicle vs. a HF structure. I've enjoyed sharing my experiences under this handle over the years and will continue to do so when I have time (as well as myself on other platforms).
----Mod Note (Andy): the following is pulled from a comment inside the thread
"Kenny_Powers_CFA"Some prompts if you feel like it:
a) Best single piece of advice you've received
i) About investing?
ii) About career/work generally?
iii) About life generally?b) Best trade you've ever had and why it was the best/how you knew it was a gonna be a winner?
c) Biggest (investing) mistake you've ever made and what went wrong?
Best Investing Advice:
Understand the value add the customer gets from using the product. Economic moats aren't built by companies. They're built by customers feverishly digging to protect something very important to them. This is how I've found many multi-year compounders (I hate that term btw).
Best Career Advice:
Get really good at recognizing and finding talented people who get shit done. It's just as important as being a great investor. It should be your mission to be the best talent evaluator in the room. It will help you in your recruiting, networking, and investing.
Best Career Politics Advice:
Your first 100 days are a big deal. A lot of positive and negative attributes are cemented during this period as colleagues try to figure out what you're about. Any seemingly small action become a big deal. You'll only be known for a few things so make them count.
Bonus Career Advice:
You'll learn the most in fast growing or failing organization.
Best Life Advice:
Life isn't a neat progression. It's a step function with sudden changes. Stay humble when you're on top (it can go away fast), but never forget things can improve greatly no matter how bad things look.
Best Trade:
Not throwing out names but you can probably get a sense of what they are...Best investments have been in tech sector where I capitalized on the market not properly pricing in extraordinary network effect / scale businesses that customers loved and/or viewed as mission critical. On the flip side, my best shorts came from this space as well. I know I have a winner when a big competitor tries to copy them (hammers the stock) but upon deep due diligence learn customers are not only switching [edit: switching to the upstart from legacy ways or are not embracing the big co. offering] but the company is still taking market/wallet share in key areas. When the noise clears up, you get some massive stock appreciation.
Biggest Mistake:
Plenty to discuss but primary is selling winners way too soon. I don't mind losing money if I understand the drivers and anticipated them as a risk factor when getting into a position. It's the surprises (that I should have known) that are not acceptable. Losing money more often than not comes from not really understanding the business in the first place. Finally, there are occasions when people more senior than you are committed to a certain position and it clouds your objectivity. Huge mistake have come from in-bound pitches able you from 'smart' investors.
Some prompts if you feel like it: a) Best single piece of advice you've received i) About investing? ii) About career/work generally? iii) About life generally?
b) Best trade you've ever had and why it was the best/how you knew it was a gonna be a winner?
c) Biggest (investing) mistake you've ever made and what went wrong?
Best Investing Advice: Understand the value add the customer gets from using the product. Economic moats aren't built by companies. They're built by customers feverishly digging to protect something very important to them. This is how I've found many multi-year compounders (I hate that term btw).
Best Career Advice: Get really good at recognizing and finding talented people who get shit done. It's just as important as being a great investor. It should be your mission to be the best talent evaluator in the room. It will help you in your recruiting, networking, and investing.
Best Career Politics Advice: Your first 100 days are a big deal. A lot of positive and negative attributes are cemented during this period as colleagues try to figure out what you're about. Any seemingly small action become a big deal. You'll only be known for a few things so make them count.
Bonus Career Advice: You'll learn the most in fast growing or failing organization.
Best Life Advice: Life isn't a neat progression. It's a step function with sudden changes. Stay humble when you're on top (it can go away fast), but never forget things can improve greatly no matter how bad things look.
Best Trade: Not throwing out names but you can probably get a sense of what they are...Best investments have been in tech sector where I capitalized on the market not properly pricing in extraordinary network effect / scale businesses that customers loved and/or viewed as mission critical. On the flip side, my best shorts came from this space as well. I know I have a winner when a big competitor tries to copy them (hammers the stock) but upon deep due diligence learn customers are not only switching [edit: switching to the upstart from legacy ways or are not embracing the big co. offering] but the company is still taking market/wallet share in key areas. When the noise clears up, you get some massive stock appreciation.
Biggest Mistake: Plenty to discuss but primary is selling winners way too soon. I don't mind losing money if I understand the drivers and anticipated them as a risk factor when getting into a position. It's the surprises (that I should have known) that are not acceptable. Losing money more often than not comes from not really understanding the business in the first place. Finally, there are occasions when people more senior than you are committed to a certain position and it clouds your objectivity. Huge mistake have come from in-bound pitches able you from 'smart' investors.