https://www.thestreet.com/story/722515/1/harvard-money-manager-graduates-to-hedge-fund.html Go read all you can find about Jon's strategies and performance while at Harvard. That's prior to founding Highfields.
Making 14% a year on options is a pedestrian task...I'm pretty sure a monkey with position sizing software could do it. Keeping those gains in a fully compounded account when it hits the fan is the difficult part. Black swans swim along a lot more than their name implies when you're constantly exposed to the market's machinations. And the problem is, when these positions go bad on you, they do so I the worst possible way. You get hit with the delta move at a time when volatility is rocketing away from you and liquidity dries up while all those people you wrote the contract to decide to hunker down and weather the storm under your protection. If you're lucky in that instance, the call comes from the margin desk; for the unlucky it comes from a debt collector.
Exactly.. That is what I wrote few posts earlier. It is not hard to do it, but you would have to keep portfolio size fixed. So that if disaster strikes after a few years, you still keep gains from previous years.. But then again you miss on all the compounded gains and get behind after 30 years..
He's free with the software. Fair warning though, he throws stuff when the black swans swim along...brings a dark and very literal meaning to the "hit the fan" idiom.