Michael Steinhardt
Stock Market: Invest in Your Fortune. Success Stories
"Before all, a proficient trader has to be a man having command of his impulse to follow his ideas up to the end and to possess mind versatile enough as to picture the breaking points to make them winning points"
Michael Steinhardt graduated from Wharton Business School when he was 19 to establish Steinhardt Partners mutual fund at 26. He built his capital on managing a hedge fund just as George Soros did, later saying the hedge funds to have an investment risk gap ranging from 200% earnings to 200% losses. Steinhardt’s play was strong enough to saved his initial fortune over two times to more than $500 on successful hedge operations.
Steinhardt made a point of never operating neither stop-losses nor charts. There was a time he paid Wall Street operators $35 mln a year as commission for the latest updates to always be ahead of market. Michael Steinhardt became famous through several successful speculations, venturing on $250-mln long position for five-year Treasuries in 1981 (Steinhardt’s fund’s stock capital totaling minor $50 mln), market interest rates for date soaring 14%. He lost $10 mln in the middle of transaction even though carrying the position to finally take $40-mln profits for the operation to constitute a 97% record yearly yield.
In 1983 Steinhardt opened long position for 800,000 $117 IBM shares to close the position at $132 per share further slewing into uncovered short for 250,000 $120 shares. He operated the third challenging speculation in 1985 paying $0.50 per Montedison Italian sleeping beauty share to make a $3.00 exit within a year to constitute the fund’s major yearly earnings.
Actual price of $1 invested in Steinhardt Partners in 1967 is $550 for date
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