Howard on the New Financial Frontier

Great post from Howard Lindzon:

The best strategy to come out of this mess will be Global Macro Funds, funds with deep pools making concentrated bets in sectors and countries. They will be funds focused on a longer term horizon with bigger pools of capital. They embrace the volatility because of their connections, patience and deep knowledge of their sectors. The displaced talent from the industry will gravitate to these funds first. It is their best opportunity to be paid for their experience. I am digging through some of the worst performing funds of the last few years in the Global Macro sector and with the help of some of my friends in the industry plan to find a few and make some investments.
At the other end will be the nimble, the creative and the opportunistic. Those willing to change the industry through hard work and the profiting from niche markets afforded to them in the new financial landscape. This is where I will focus my energies and am already writing a few business plans. I now my strengths and weaknesses. I am not a ‘Shark’, but a ‘Pilot Fish’ and very in tune with the limits, and opportunities that affords me.
Thousands of great traders were thrown out into the wild the last few months. They are disoriented, pissed, nervous, but for the most part, they will end up on their feet and contribute back into the financial system in new ways – small hedge funds, start-up economy and other leadership roles. Some will write books and some will leave the financial world for good.
The financial media world on the other hand will continue to talk about ‘BOTTOMS’ – Was this one? If not when?
I am licking my chops because this bottom talk and regulation talk and babble will go on for 6-12 months. It’s noise and it will drag you in if not careful. In the meantime, I will be working towards one end of what I know is going to be a hugely profitable niche and start cranking.

Read the whole thing.

Posted by on September 20th, 2008 at 3:34 pm


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