Monroe Trout

Discussion in 'Educational Resources' started by blueberrycake, May 31, 2003.

  1. Is there any published information out there about Monroe Trout and any details as to how he may have traded? Besides the interview in The New Market Wizards, there seems to be absolutely no information out there about him.

  2. I'm not 100% sure, but I think Aaron traded with him. Perhaps he could share some insights?
    Trout turns over the reins
    Jan-17-02 Monroe Trout, one of the world’s most highly-regarded hedge fund managers, will step down from Trout Trading Management Co next month, to spend more time with his family and pursue other interests outside of hedge fund management.
    TTMC’s Trout Trading Fund currently has assets of almost $3 billion, and has generated an average annual net return of 21.5% over its 14-year life under Trout’s management. The fund made 13.63% in 2001, down slightly on the 15-16% returns it has generated in recent years. In its extraordinarily consistent performance record, it had just six losing months in the last 10 years, and never had a losing year.
    Matthew Tewksbury, currently TTMC's chief executive officer, will assume Trout’s roles – including majority ownership of TTMC, and the position of chairman – on April 1 2002. Reflecting the change in control, TTMC will be renamed Tewksbury Capital Management and, subject to investor approval, Trout Trading Fund will be renamed Tewksbury Investment Fund.
    Tewksbury joined Trout in 1992, and was named to his current position in 1999. The terms of Tewksbury’s acquisition of a majority shareholding in TTMC were not disclosed.
    A source close to the company told MAR that the company was not anticipating significant redemptions, "although some of the investors have said that they want to get to know Matt a little better than they do now." Trout Trading Fund has been closed to new investors since 1995 but has, unlike many of its peers, never returned capital to investors.
    "Many of the investors who have been informed of the move have told us that they would like the opportunity to fill in the space if redemptions are forthcoming," said the source.
    In announcing his retirement, Trout said that he was proud of the track record he had built for his investors. "Over the last 15-plus years, we have built a world-class trading firm with first-class employees. I have 100% confidence in Mr Tewksbury and the rest of our team, and I expect [the fund] to continue to produce superior risk-adjusted returns far into the future."
    "Managing TTF and TTMC has been an extremely rewarding experience, and one I will always cherish."
    Tewksbury said that he is "honored and excited" to have the opportunity to build on Trout’s success. "We have an immensely talented and hard-working group of people who have made enormous contributions...I am confident that with our extensive infrastructure and the diligence and ingenuity of our team, we will continue to deliver outstanding performance for years to come."
  4. Foz


    Once Trout closed his fund he no longer had any need to do interviews. And in fact, he probably preferred privacy to getting skewered by the press (as most rich people are.)

    I don't think Trout reported to any of the hedge fund databases for a decade or more.

    Which brings up the issue of survivorship bias in the hedge fund databases.... It seems to be commonly accepted knowledge that hedge fund indices are overreporting returns due to funds not reporting their bad results. Well, I think there is also an effect from good funds closing and ceasing to report results also.

    With Trout's amazing returns (and uncorrelated with equities also!) I'm not surprised he kept his strategies proprietary.
  5. Aaron


    Unfortunately not. Every Trout employee signed a nondisclosure agreement.