Sublime

Trend Following with Managed Futures: The Search for Crisis Alpha (Wiley Trading, 2015), written by Alex Greyserman and Kathryn Kaminski.

The great art dealers operated like index funds. They bought everything they could. And

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Besides, Patterson argued to a colleague, if someone left a bank or hedge fund to join Renaissance, they’d be more inclined to bolt at some point for a rival, if the opportunity ever arose, than someone without a familiarity with the investment community. That was crucial, because Simons insisted that everyone at the firm actively share their work

Only a tiny group at Bridgewater, no more than about ten people, enjoyed a different view. This band of almost all men were chosen not only on merit, but on loyalty. They almost without exception had never worked anywhere else. Dalio and Jensen plucked the members from the crew of Bridgewater investment associates and offered them entry to the inne

The fund, now managing $10 billion, had posted average returns of about 45 percent a year, after fees, since 1988, returns that outpaced those of Warren Buffett and every other investing star. (At that point, Buffett’s Berkshire Hathaway had gained 20 percent annually since he took over in 1965.)

If a strategy wasn’t working, or when market volatility surged, Renaissance’s system tended to automatically reduce positions and risk. For example, Medallion cut its futures trading by 25 percent in the fall of 1998. By contrast, when LTCM’s strategies floundered, the firm often grew their size, rather than pull back.

Good work habits are vastly underrated.