Last Updated on 7 September, 2021 by Samuelsson
Larry Hite is one of the pioneers of system trading (computerized trading) together with Ed Seykota. His book, The Rule: How I Beat the Odds in the Markets and Life—and How You Can Too, was named a Wall Street Journal, LA Times, and a Porchlight Books bestseller. He co-founded Mint Investments in 1981, the largest commodity trading advisor in the world in terms of AUM.
He was born in 1941 in Brooklyn, NY. Larry was born blind in his left eye and his right eye vision is poor. He could barely see the letter E at the top of the eyesight chart. He also had difficulty reading and writing, “I did poorly at everything I tried and felt like a failure for most of my childhood,” he wrote in his book, “The Rule: How I Beat the Odds in the Markets and Life—and How You Can Too” (McGraw-Hill).
His got obsessed with financial trading when during a class, a professor discussed various financial securities such as commodities futures and options. However, the professor dismissed it and said it’s too speculative and volatile because of factors like weather and governments policies affecting the price of the securities, but young Larry was fascinated by the concept.
Before his journey into the financial market in 1968, Larry was a rock music promoter during his college year and an occasional screenwriter and actor.
Larry introduced the first principal fund-protected concept, which led to many successful products and financial engineering innovations in the market. He adopted systematic trading of equity to the portfolios he manages at Mint same year. And in 1994, he retired as a manager at Mint. Afterward, he maintained the position at Hite Capital LLC as managing director.
In 2000, he shifted his attention to his family office, which included proprietary trading and continuous development and research in the area of computerized trading. He formed Hite Capital Management, partnering with his former colleagues at the Mint team. He became the chief investor and chairman of Metropolitan Ventures Partners (North American regional branch), a position which he maintained to date. Larry has partnered with International Standard Asset Management (ISAM), where he created a multi-strategy platform of fund of managed accounts and liquid hedge fund strategies.
A chapter of the popular book, Market Wizards, written by Jack Schwager, was dedicated to his trading and risk management philosophy. In describing his trading approach, this is what he has to say: “We approach markets backward. The first thing we ask is not what we can make but how much we can lose. We play a defensive game.”
He’s also a man given to charitable causes, founder, and chairman of The Hite Foundation. The Hite Foundation is focused on reducing the number of homeless persons in New York and assist scholars whose lives and work are shaky because of the repressive nature of the society they live in.
He is currently serving as the Chairman of the Development Committee for the Institute of International Education’s Scholar Rescue Fund, whose aim is to provision for professionals and scholars at risk throughout the world.
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