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One Hedge Fund CIO Explains His Life Through 4 "Market" Anecdotes
09-10-2017, 05:55 PM,
One Hedge Fund CIO Explains His Life Through 4 "Market" Anecdotes
One Hedge Fund CIO Explains His Life Through 4 "Market" Anecdotes

<p>Continuing our <a href="">eariler post on Eric Peters</a>' latest weekly observations, here is a somewhat whimsical follow up, in which the One River Asset Management observes his life as 4 "market" anecdotes. </p>
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<p><strong>Anecdote: My life in four acts:</strong></p>
<p><strong>Act I: Coffee with my wife </strong>[building a portfolio to withstand known unknowns]</p>
<p>Eric: I ordered a coop that can house 8-15 chickens.<br />Mara: Why so big? I swore we’ll never have more than four chickens at a time. <br />Eric: I’m trusting my instincts on this.</p>
<p><strong>Act II: Fresh from the farm </strong>[recognizing signs of an impending bear market] <br />Mara: We bought six chickens!<br />Eric: Six? I thought we’d never have more than four?<br />Mara: The farmer wouldn’t sell less than six.<br />Eric: But you were at the farm, surely you could’ve bought six and given two back?<br />Mara and Kiddies [glancing at one another, bewildered]: That thought never crossed our minds.</p>
<p><strong>Act III: Dinner table chatter </strong>[unexpected correlations blow up quantitative risk models]<br />Olivia: We need to get another dog daddy. [enthusiastic nodding all around the table]<br />Eric: Are you all crazy, we just got six chickens?<br />Olivia: Exactly! With six chickens for us to love, Shackleton is lonely. He needs a companion. <br />Mara and Kiddies: [a clamor of incoherent arguments in favor of adding to our Golden Retriever long; indistinguishable from a panel of CNBC “buy the dip” talking heads]</p>
<p><strong>Act IV: Text exchange </strong>[trapped, no market liquidity, coming to terms with a runaway loss]<br />Mara text: Look at these pictures!!! [embedded photo of three Golden Retriever puppies]<br />Eric text: I lost control of my life the day I met you, but am only beginning to realize it now. Did you buy one? Or all three?<br />Mara text: All three!<br />Eric text: Perfect, you know how much I’d hate to separate a litter.<br />Mara text: Call me.</p>
<p><strong>Prologue: My life </strong>[delusions of a highly improbable event that gets you back to flat]<br />In the end, Mara bought one puppy. Which seems a more manageable position than three. So we all somehow feel like winners. My life is chaos, for better or worse. Wife, four kids, two dogs, six chickens, turtles, frogs. </p>
<p>And I frequently drift off, praying a pack of coyotes stroll in one stormy night, getting me back to flat.</p>
For those unfamiliar with Eric Peters, here is a quick, 6minute breakdown of his investment approach.</p>
<p><iframe src="" width="560" height="315" frameborder="0"></iframe></p>

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