A Trader's Life
By Quint Tatro Nov 21, 2008 10:20 am
What the day-to-day work of money management looks like right now.
Amid the incessant talk of government bailouts, economic data and political transitions, lies the discussion surrounding mass liquidations. No one quite knows the number, but speculation as to how many hedge funds have gone out of business, or will go out of business, might just be the vast majority of the group as a whole.
Just yesterday, we heard that Citigroup (C) was closing its Corporate Special Opportunities fund, which -- though of course just one of the company's many major issues -- joins a host of other closings taking place all over the globe.
While most would regard this as a sad state of affairs, others would adopt the "it serves them right" attitude. The money-management world is a place where one can still see the last hopeful flickers of true capitalism. Despite what you read, or hear, not everyone is under mass liquidation, and not everyone will close their doors.
When all is said and done, a new crop of advisors and managers will be ushered in to serve the needs of those who remain, money will transition from one shop to another, and those are the managers and funds we'll be reading about in the years to come.
So rather than drone on about the negatives currently surrounding the business, I thought I would walk you through a day in the life of myself, a manager who has navigated these rough waters well and is capitalizing on the advisory shift taking place. The story isn't all that exciting, and it doesn't take place in the heart of Manhattan, but that might just be one of the reasons my doors aren't closing.
The alarm clock goes off and I catch the tail end of an interview with Ford and General Motors labor unions discussing the possible auto bailout. My first thought: Where does it stop? I quietly creep down the hall (so as to not wake my 2-year-old) and settle in on the living room couch with my Bible for some quiet time.
Still lounging on the couch I fire up the laptop to find futures flat to negative. I jump on Twitter to catch up on the latest overnight news flow, and quickly skim through the headlines. News doesn't play into my investment or trading strategy one bit, so any gander at this is simply to keep informed.
No positions in stocks mentioned.
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