He was the owner of an investment company, which used quantitative trading strategies targeting commodities, currencies and other securities markets.
So says the 'expert' who doesn't have a clue about what he's talking about!!! Just a little background for you. Firstly, the commodity, currency and securities markets are the most volatile global environments. Secondly, high levels of volatility generate even higher levels of risk. Thirdly, quantitative strategies generate their own level of risk over and above market norms. Just as in any casino the trick is to get out whilst you're still ahead - especially when you're playing with both your money and that of clients.
It's a bit worrying that given Obama's re-election and his promise to make the wealthy pay taxes to match their wealth John Henry is rumoured to be about to jump ship, hes lost bigtime moneywise during the recession and as you pointed out dave hes playing with his own money as well as our club's in a very iffy financial climate. The jury is still out on him/FSG in the eyes of a lot of reds and i read somewhere that he can use money LFC earn to prop up the Sox, his racing team or NESN if they struggle financially over there, FSG have tied up partnership and sponsorship deals using the LFC name and reputation yet have banked the money and come january we'll see if they want their 'asset' to prosper by spending on new players we need or if they're just carpetbaggers.
This is the biggest reason I put this up, we know they like their sponsorships and for things to run smoothly, but like you say are they using the global brand of LFC to keep their hands on teh up in their other businesses? This summer seemed like we had 11 mil here, 15 mil there, and then nah we got no money for our most important position? We shall see....
In the world of business, nothing is ever wholly black and white. I'm not sure where you are getting your info re John Henry "losing big time". As the market conditions have changed since 2007 (in the US)/2008 (here), he has reduced his exposure by paying back/paying off investor accounts. Sure his wealth appears to have declined dramatically but then so has the level of risk attached to it. If Henry is smart enough to get out of casino type investments before either a crash comes or he makes a wrong call then he's smart enough to know that cutting finance to LFC is not the best way of counter-funding any of the groups other assets. However, publicising a corporate self funding strategy is. JH made his dosh by consolidating large amounts of money into small market changes- a variance of 0.00012% is probably of little consequence. However, if you put say $2Bn on the right side of that variance then a very tidy profit ensues. It's a bit like playing roulette in that one day you'll be on the wrong side of that variance. A wise investor knows when it's time to leave the game.
