Legendary Mathematics wizard Shakuntala Devi, dubbed as the world’s fastest ‘human computer’ and who made complex mental calculations as a child prodigy, died at a hospital here today following respiratory problems.
Devi, who has enthralled fans with her prowess for decades, was 83.
“She passed away at Bangalore Hospital,”Shakuntala Devi Educational Foundation Public Trust Trustee D C Shivadev told PTI. Doctors declared her dead at 8.15 AM, he said. (more…)
Nearly every professional Trader will agree that Jack Schwager’s “Market Wizards” series is required reading. And his latest in the series, Hedge Fund Market Wizards, continues the same tradition of excellence. I’ve nearly finished my first read-through. If you are time constrained (and who isn’t) and/or you haven’t yet picked up the book, I may be able to save you some time by offering this brief mock introduction to each Trader that nearly describes every interview in the book:
Over the past 10-15 years, Trader X has achieved an [insert mid-teens to mid-twenties]average annual return. While this return may not sound that impressive, consider that Trader X has never had a drawdown larger than [insert impressive sounding single-digit number]percent! However, Trader X’s Sharpe Ratio is extremely high. How could this be? Well, a shortcoming of the Sharpe Ratio is that it makes no distinction between upside and downside volatility and therefore understates the Trader’s true performance because volatility has been heavily skewed to the upside (which, presumably, most investors wouldn’t have a problem with).
How has Trader X achieved such an impressive Return/Risk track record? He lazer beams extreme focus to risk controls and never risks more than [insert some minuscule number]percent of his total portfolio on any individual trade. Combining these risk controls with his attention to seeking out asymmetric trading opportunities that have the potential to yield trading gains far in excess of the maximum risked to enter the trade is what separates Trader X from his pedestrian competitors.
There ya go, you’ve basically read all 15 chapters of Hedge Fund Wizards.
Now what do you think you need to focus on?