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.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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.
• 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.
• What he learns from going through drawdowns.
• 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.
• How he plans to avoid becoming more risk averse as the firm grows.
• 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.
• 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:
• Currency Investing: An Alpha-Rich Environment
• How to Invest When Both Stocks and Bonds are Overpriced
• The Case for Currencies as an Asset Class Becomes Stronger
• Books that Mark mentions and recommends:
• Winning The Loser’s Game
• The Obstacle is The Way
• Economics in One Lesson
• The Structure of Scientific Revolutions

Follow Niels on