September 09, 2011
So I'm lucky enough that I coach a kid whos Dad runs a hedge fund. He has always been nice enough to leave an open invitation to invite me in and see how the business works. I finally took him up on that offer and am glad I did as the whole experience was very cool.
They share office space with a mutual fund and I met with him and the hedge fund's CFO as I was able to learn about both funds. This part was very cool to me, the mutual fund was very quantitative and being a math geek myself it was cool to see them take data and formulate it into a strategy. One funny part about this meeting was standard deviation of the fund was somehow brought up. He mentioned they were in the low teens, the hedge fund was in the high teens then I mentioned that my standard deviation when playing poker was in the 70s.
The look on their faces was actually pretty awesome. From there they asked how I handled it and I talked about trying to remain emotionless, BR management, etc. Then after a bit more about the mutual fund there was a break in the action. I couldn't help myself, with him being such a numbers guy I had to ask if he was familiar with Sabermetrics (baseball advanced stats). He wasn't so then I had to go off on a quick tangent about how batting average is overrated and the goal is to not make outs. I could've gone on on an hour talking about it but decided to close it by just recommending the book Moneyball to him.
From there I met Andy who was a trader at the hedge fund and I got to see his desk which was like a poker players dream setup. He had 4 monitors with a bunch of info on each one. One thing I found funny is that he used AIM and when I commented on that he goes yeah "I only use it for business". Which is the same for me as none of my "real life friends" use it anymore. All the information they have to use is incredible and very powerful. However again it goes back to not using too much emotion and making good calculated +EV decisions.
Clearly there are a lot of similarities between the financial field and poker. Now if it were only easy to get a job with a hedge fund or mutual fund I'd be all set. Either way though I was lucky enough to experience this as a lot of people won't have this opportunity, it was a blast.
"The way to gain a good reputation, is to endeavor to be what you desire to appear" - Socrates