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Thursday, February 18, 2016

Andreas Halvorsen: One of the Most Efficient Fund Managers

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 3

“Since 2003, I have traded the financial markets with my own capital using self-developed, quant-based strategies. The more I have learned and observed as a full time trader, educator and participant in the trading industry, the more motivated I have become to correct the gross and dangerous misinformation bombarding today’s active investors.” – Scott Andrews

Name: Andreas Halvorsen
Year of birth: About 1961
Nationality: Norwegian/American
Occupation: Hedge fund executive

ONE OF THE BEST PERFORMING TRADERS
Andreas was born in Norway. He graduated from the Norwegian Naval Academy and became a leader of a Norwegian SEAL team. He also earned a BA in 1986, from Williams College and later earned his MBA from Stanford University School of Business in 1990.

He served under Julian Robertson (the father of hedge funds), working at Tiger Fund Management and attaining a senior position. After leaving Tiger, he co-founded Viking Global Investors LP in 1999; a hugely successful funds management firm. Andreas is often referred to as one of the best fund managers in the world.

In the year 2012, the firm was managing about $16.7 billion. Later the firm was managing more than $30 billion – a testimony to strong performances and reliability of the firm. Andreas has been mentioned as one of the highest earning fund managers, placing 11th in Forbes' 2012 rankings and 9th in 2015, according to Institutional Investor's Alpha.

As of October 2015, Andreas was worth $2.8 billion. He’s married to Diane: They’ve three children and live in Darien, Connecticut, USA.

What You Need to Know:
  1. Certain persons joined trading companies that once performed very well and later went kaput. As a result of that, they swore to never have anything to do with trading again. Andreas is different. He once worked at Tiger Fund Management, which performed very well in the first several years and later suffered heavy losses. Andreas left Tiger and co-founded another trading firm - Viking Global Investors – which is now hugely successful. If you were Andreas, you’d possibly never trade again after witnessing what happened to Tiger. However, you might now covet his $2.8 billion USD net worth. Any lesson? No matter what your trading experience is, NEVER give up!

  1. The Viking Global Equities made roughly 23% returns in 2013. Like Andreas, there are super/master traders. In the year 2014, a smaller of the firm’s funds generated about 38.4%. There are talented traders. There are profitable traders. There are many of them in this world. They faced the same challenges you’re now facing. You can overcome your trading challenges; just as they did. You can become a super/master trader, talented and profitable trader. Trading mastery is already within you.

  1. Since its start in 1999, Viking Global Investors has made a profit of about 22% per annum, but not without occasional losses. According to one source, the fund was making losses from September 2001 to March 2002, when the portfolio was down 12%. Was that another reason to quit trading? No! The fund has been hugely successful overall. You can have some losing weeks, months (even years), but you should be successful overall. Transitory losses should never discourage you.  

Conclusion: When you risk about 3% – 8% of your account per trade, thus facing the consequences. Experience will later force you to reduce the risk per trade. Later, you’d even reduce the risk further. Experience is the best teacher.

The quote below ends this article:

“You can always make money back when you’ve lost it.” – James Altucher 
  


What Super Traders Don’t Want You To Know: Super Traders

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