Sunday, July 3, 2011

A Playbill: Historic Rates of Performance

After a little research, I have put together a preliminary list of the greatest rates of performance within a 12-month period of time. I already hear the naysayers (What about this trade or that campaign?). This listing is based on a light review of my trading and investment library. So, you should not assume the list is 100% complete or accurate. Instead, think of the listing as a playbill for keeping Terry's Portfolio growth in perspective over the coming months.

Selected 12-Month Epic Rates of Return:

1. 1973 - 433% - Larry Williams' 1973 Commodities campaign
2. 2007 - 400% - Michael Burry's 2007 Mortgage subprime derivatives
3. 2008 - 16,324% -Unidentified currency trader reported in Super Trader by Van K. Tharp, pages 202-204. The results were unaudited and were only from July 28 through October 12, 2008. (The trader probably died of a heart attack!/smile)
4. 1987 - 67,000% - Nassim Taleb's front month long position in eurodollar options on October 20, 1987
5. 1972 - 3,428% - Michael Marcus' commodities trade in plywood/lumber
6. 1973 - 266% - Michael Marcus commodities
7. 1977 - 1,333% - Bruce Kovner futures contracts
8. 1980s - 100%+ - Paul Tudor Jones (five consecutive, triple-digit return years)
9. 1965 - 100% - Gary Bielfeldt soybeans contracts
10.1962-1963 - 4,000% - William O'Neil pyramids profits in three exceptional back-to-back trades--short Korvette, long Chrysler, and long Syntex

Blogger's note-To repeat myself, I know I have omitted many other epic trades. For example, I did not calculate rates of return on a 12-month time frame for Nicholas Darvas or Jesse Livermore or John Paulson or George Soros or
Marty Schwartz. So, view these examples as an illustration of A+ performance over the years.

Your faithful newsletter writer,

Wink

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