Thursday, January 10, 2008

Book Review: An American Hedge Fund


Recently I finished reading the book "An American Hedge Fund" by Timothy Sykes. This book is about how Timothy Sykes turned his $12,415 Bar Mitzvah gift money into $1.65 million in about 4 years. Timothy Sykes writes about starting his own hedge fund and the ultimate demise of his fund.

Sykes starts out in high school trading after recieving about 12k in Bar Mitzvah gift money. He has always been interested in the stock market and after getting accepted to Tufts University early in his senior year he decides to focus more on trading then on classes his senior year of high school. Sykes is very successful in his early trading. He traded small caps based on news releases. Any sort of news release on the penny stocks he was interested in would cause big jumps in the prices. Sykes was forced to adapt his trading strategy a few different times as the market changed. He discusses his changes and how he ultimately ended up mostly short trading penny stocks for profits. He attended Tufts University for a year or two before transferring to Tulane.

While in his final year at Tulane, Sykes pursues his dream of starting and managing his own hedge fund. Sykes discusses the problems with the hedge fund industry and the difficulties that hedge fund industry regulations cause for small start up funds to raise capital. Sykes struggles to raise any capital for his fund. It seems that when Sykes is finally gaining some momentum and getting some investors, one of his earlier investments is falling apart and giving him the worst losses of his career. Unfortunately, Sykes traded in restricted shares of a company and cannot sell the shares for two years. This strays from Sykes typical day trading strategy and is the ultimate downfall of his fund.

Was the book worth the read and should you buy it? I enjoyed the book overall. It is a good biography of someone who has started out with a small amount of money and turned it into a large amount of money. I like hearing the stories of people doing this because I feel it gives me hope. I wish I had the talent to make lots of money in the market. However, I was a little disappointed that his strategy is not defined more. It seems impossible to me to figure out exactly how he traded based on the book. I would have liked to have seen some specific trades and strategies but that is not what this book is. Therefore, I would recommend this book to those who enjoy reading any stories about the stock market. However, if you are looking for a guide on how to trade, I would look elsewhere.

7 comments:

Anonymous said...

gucci 2015
Howdy! This blog post couldn't be written any better!

Looking through this article reminds me of my previous roommate!

He constantly kept talking about this. I most certainly will forward this information to him.
Fairly certain he's going to have a great read. Thanks for sharing!

Anonymous said...

Hi, i feel that i saw you visited my weblog so i came to go back the
desire?.I am trying to in finding issues to enhance my site!I assume its
good enough to make use of some of your ideas!!

my blog ... emergency plumber Avondale

Anonymous said...

Can it be worthy enough of being lusted so strongly?
To soft reset the iphone you should do these. Go-To 'Settings', then on to 'Standard',' Reset' and 'Reset Network Configurations'.


Here is my site cydia tweaks

Anonymous said...

The honey pepper syrup has a sweet citrus peppery taste to it.
It soothes irritated tissues, heals wounds and protects the respiratory system.

Constipation refers to a health condition when fewer bowel
movements are occurred than it should be.

my blog post; boots natural senna laxative tablets review

Anonymous said...

This application provides you total control over overhauling the theme and graphical elements of your
device. All you have to do is plug it into the USB port of your pc, place a document on and push "Play".


my weblog - download vshare

Anonymous said...

Thanks , I've just been searching for information approximately this subject for a long time and yours is the
best I have found out so far. However, what about
the conclusion? Are you certain concerning the source?


my blog: Japanese massage in London - Alkatreszbazis.info,

Anonymous said...

Thanks , I've just been searching for information approximately this subject for a long time and yours is the
best I have found out so far. However, what about
the conclusion? Are you certain concerning the source?


my blog: Japanese massage in London - Alkatreszbazis.info,