“Investing in some ways is unbelievably complex, and in other ways it’s literally as easy as buy low and sell high.” – Mark Whitmore (Tweet)
In the second part of our conversation with the founder of Whitmore Capital Management, we learn the daily challenges, and lessons learned right from the founder and owner of a fledgling firm. We dive into discussions on risk management, drawdown, attracting outside capital, and much more.
Thanks for listening and welcome to Part 2 of our talk with Mark Whitmore.
In This Episode, You’ll Learn:
- How many currencies Mark trades and if he thinks he will trade more in the future.
- About how he diversifies his system.
- A case study of the Russian Ruble.
- His use of charts when looking at currencies.
- A discussion of cognitive biases.
“Most investors make a mistake in seeing capital losses as a tragedy to be avoided at all costs. Just like if you walk into a department store and socks are 50% off, you don’t go: ‘Oh my gosh I can’t believe the socks I own are worth less than what they were the day before!’, you go in and buy more socks because it’s a good value.” – Mark Whitmore (Tweet)
- How he compares his system to trend following and how the two models can work in harmony.
- How he enters and exists a trade using his system.
- Why he is an “every end of two weeks” trader.
- How much capital he would like his strategy to manage and how much it can feasibly manage.
- How he defines risk and manages risk.
- How he deals with drawdowns as a fund manager.
“We targeted a ratio specifically where our biggest drawdown based on historical data and my returns would be 30%.” – Mark Whitmore (Tweet)
- What he learns from going through drawdowns.
“I’m blessed as an investor and as a fund manager, because I think that the chief virtue that I have is that I’m just very stoic.” – Mark Whitmore (Tweet)
- How he goes about doing research for his strategy without a research team.
- How he sees red flags in his strategy and when he has changed his model.
- How Mark goes about marketing and getting interest from investors in his strategy and fund.
“I actually loathe the marketing and sales side of business.” – Mark Whitmore (Tweet)
- How he plans to avoid becoming more risk averse as the firm grows.
“My plan is to have 3 different hedge funds that essentially use the same strategy and just employ different leverage levels.” – Mark Whitmore (Tweet)
- What he thinks about the “key man” issue and what he is doing to plan for the eventuality of leaving his business to someone else.
- How he decided the location of his business.
- What the hardest thing will be for him as he tries to grow the business.
“To me the most difficult thing is the notion that one might be constantly tempted to change one’s fundamental investing philosophy and approach to satisfy investor demand.” – Mark Whitmore (Tweet)
- What investors should be asking him that they are not.
- What it takes to become a great trader in Mark’s view.
- What he learned from the baseball card market in the US during his university years.
- What he has learned from past failures.
- His favorite books and why he recommends them.
Resources & Links Mentioned in this Episode:
- Mark has authored many white papers on currencies, including:
- Books that Mark mentions and recommends:
This episode was sponsored by Swiss Financial Services:
Connect with Whitmore Capital Management:
Visit the Website: www.WhitmoreCapitalManagement.com
Call Whitmore Capital Management: +1 (206)-227-0644
E-Mail Whitmore Capital Management: firstname.lastname@example.org
Follow Mark Whitmore on Linkedin
“The most valuable thing that I could probably do is to actually turn down money.” – Mark Whitmore (Tweet)