create your own

Bruce Kovner and Caxton Associates

71
rate or flag this page

By MakinBacon


Bruce Kovner and Caxton Associates Making Investors Wealthy

Unless you are curious about who the most wealthy people in the world are, you probably have never heard of Bruce Kovner, or his wildly successful hedge fund Caxton Associates.

What's interesting about this, contrary to the many huge egos out there that want fame with their fortune, Kovner prefers to keep a low profile, and maybe with an exception or two, doesn't grant interviews.

Bruce Kovner and Caxton Associates has quietly went about building extraordinary wealth for his clients, as over a 10-year period, the index fund returned an average of 87 percent annually.

During that period of time, if you would have invested as little as $1,000, by the end of the 10-year period, you would have built up $1 million. Not bad!

Successful Investor and Hedge Fund Manager Bruce Kovner



Bruce Kovner and Caxton Associates' Investing Philosophy

What is unique about Caxton Associates is the philosophy they employ to generate these types of returns via the hedge fund.

How they do it is to look at major trends that are moving the markets. Now moving the markets for Bruce Kovner has nothing to do with whether those movements are up or down, the key is that they are moving; that's what they look for when searching for places to put their own and their clients' money.

Another key element to continued success is they don't care what segment of the market is moving. It could be commodities, bonds, real estate, or something within each of those categories, or maybe something completely different.

The only guideline they look for is whether the what they are looking at has the potential to, or is, moving one way or the other. That's it!

Most investors look at prices if they are moving up, missing huge opportunities to make money when prices are falling. Caxton Associates are experts in both, and operate accordingly.

All their job is is to make sure whether prices are moving up or down, they're riding the correct wave. The performance over the years shows they are on the right side of the movements far more times than they aren't.

How it all started for Bruce Kovner

Kovner wasn't born with all this. When all this started for him, he borrowed $3,000 from a credit care and in a relatively short time increased it to $40,000.

What was interesting about this first trade, was he made a mistake that taught him a valuable lesson in how to invest going forward. Kovner either forgot, didn't know, or simply didn't think of putting a stop on the soybean trade he made, so even though it reached $40,000, it dropped to $23,000 before he finally got out. Still not bad, but a lot worse than it could have been.

Even so, that was a pretty cheap investment lesson to learn for a young man just learning the ropes. And he still walked away with a hefty gain. 

Bruce Kovner quietly lives his dream

Many people could learn a lot of Bruce Kovner and how he has conducted his life. He prefers to remain behind the scenes and quietly go about making money for his clients, building his own fortune, and contributing to the things and causes he wants to support.

That's far better than the hoopla and celebrity status so many of the wealthy - and not so wealthy - attempt to reach.

It's far better to work out of the public eye than to enter into the limelight that can be so destructive and create numerous enemies or sycophants.

Bruce Kovner has learned that lesson, and is happily living his dream without the baggage fame brings with it.

Print   —   Rate it:  up  down  flag this hub

Comments

RSS for comments on this Hub

No comments yet.

Submit a Comment

Members and Guests

Sign in or sign up and post using a hubpages account.


optional


  • No HTML is allowed in comments, but URLs will be hyperlinked
  • Comments are not for promoting your hubs or other sites

working