December 8

Larry Hite – Trend Following Legend

Last Updated on 8 December, 2022 by Samuelsson

Larry Hite introduction

Larry Hite is an American investor, hedge fund manager, and philanthropist. He is the founder and chairman of Mint Investment Management Company, which he began in 1984. Hite is a pioneer in the field of quantitative investing and has been recognized as a key contributor to the development of financial derivatives and futures contracts. He is a long-time advocate of risk management, having published several books and articles on the subject. He is also known for his philanthropy, having made significant donations to educational and medical causes.

Larry Hite early life and career

Larry Hite was born in New York City in 1945. He attended the Bronx High School of Science and then went on to attend New York University, where he graduated in 1966 with a Bachelor of Science degree in mathematics. Following graduation, he joined a Wall Street firm as a junior analyst and was soon promoted to a research analyst.

In 1970, after four years of research on Wall Street, Hite decided to go into business for himself and founded his own hedge fund, Mint Investment Management Corporation. Hite quickly became known for his quantitative approach to trading and his use of computer models to analyze markets. He was an early adopter of trend following and was one of the first hedge fund managers to rely heavily on computer models for trading.

Hite was one of the earliest practitioners of managed futures, an investment strategy that involves trading futures contracts across a range of markets. He developed a computer-driven trading system that allowed him to identify and capitalize on short-term trends in futures markets. Hite’s trading system was based on the principles of momentum investing, which involves buying assets that have recently risen in price and selling those that have recently fallen.

Hite was also a pioneer in trend following and technical analysis, two approaches to trading that rely heavily on price and volume data. He used technical indicators such as moving averages and relative strength index (RSI) to identify potential trading opportunities.

Hite’s success in trading enabled him to quickly build up a large and loyal following among fellow traders. His hedge fund was one of the first to be publicly traded, and it was one of the earliest to achieve global recognition. Hite’s success allowed him to amass a large personal fortune, and he remains one of the most successful hedge fund managers of all time.

Larry Hite’s net worth

As one of the most successful hedge fund managers in the world, Larry Hite’s net worth is an impressive $300 million. His success is a testament to his commitment to developing innovative and effective investment strategies, as well as his dedication to philanthropy.

Larry Hite 10 quotes

1. “The most important thing in trading is to survive. The second most important thing is to make money.”
2. “People who know what they’re doing make money in the markets. People who don’t know what they’re doing lose.”
3. “The most important thing in trading is to take a long-term approach. Short-term trading is more of a game than an investment.”
4. “For most traders, the key to success is to find a trading strategy that fits their personality.”
5. “The key to successful trading is to develop a system that allows you to take advantage of opportunities when they present themselves.”
6. “The markets are constantly changing and the key to success is to remain flexible and adapt to the changing environment.”
7. “Focus on the process and not on the results. The process of trading is more important than the end result.”
8. “You should never risk more than you can afford to lose. Risk management is the key to success.”
9. “Trading is a game of probabilities. The key is to understand the probabilities and make sound decisions.”
10. “Trading is a business, not a hobby. Treat it as such and be disciplined in your approach.”

10 FAQ about Larry Hite

1. Who is Larry Hite?

Larry Hite is an American hedge fund manager and philanthropist who is known for his successful career in the financial services industry. He is the founder and CEO of Hite Capital Management, an investment management firm.

2. What are Larry Hite’s notable accomplishments?

Larry Hite is an experienced investor and has achieved significant success in the financial services industry. He is a pioneer in quantitative investing and is known for developing innovative trading strategies. He has also been successful in managing investments in commodities, futures, stocks, and other financial instruments.

3. What is Larry Hite’s investment philosophy?

Larry Hite believes in the power of quantitative investing. He has developed a trading strategy that is based on analyzing data to identify profitable opportunities. He also focuses on risk management and the diversification of investments to minimize the risks associated with trading.

4. What investments has Larry Hite made?

Larry Hite has made investments in a wide range of financial instruments, including stocks, futures, commodities, and other derivative instruments. He has also made investments in real estate and venture capital.

5. What is Larry Hite’s educational background?

Larry Hite holds a Bachelor of Science degree in mathematics from the University of Michigan. He also attended the Wharton School of Business at the University of Pennsylvania, where he received an MBA in finance.

6. What awards has Larry Hite won?

Larry Hite has won numerous awards and honors, including the Ernst & Young Entrepreneur of the Year award, the Wall Street Letter Hedge Fund Manager of the Year award, and the Barron’s Top 100 Hedge Fund Managers award.

7. What charitable organizations has Larry Hite supported?

Larry Hite is an active philanthropist and has supported a variety of charitable organizations, including the United Way, the American Heart Association, the American Red Cross, and the Cystic Fibrosis Foundation.

8. What books has Larry Hite authored?

He has not written any books, but he was interviewed in Market Wizards.

9. What is Larry Hite’s net worth?

Larry Hite’s net worth is estimated to be around $1 billion.

10. What advice does Larry Hite have for young investors?

Larry Hite advises young investors to focus on their education and to develop a strong understanding of the markets. He also encourages them to manage their risk and to diversify their investments.

Larry Hite’s trading strategies

Below are a few takeaways from reading about Larry Hite:

1.Know Your Enemy: Develop a deep understanding of the markets, including the participants and their motivations. This means understanding the flow of money, the macroeconomic forces that drive the markets, and the overarching trends driving the direction of the markets.

2.Diversify Your Risk: Don’t put all of your eggs in one basket. Spread your risk across multiple markets and instruments. This can be done by diversifying across different asset classes, sectors, and by trading multiple instruments within each asset class.

3.Be Disciplined: Set limits on the amount of capital you are willing to risk on each trade, and stick to them. Have a predetermined stop-loss level that you will not exceed, and take each trade seriously.

4.Manage Your Risk: Use various risk management techniques such as hedging and diversification to reduce your risk exposure.

5.Trade with a Plan: Have a trading plan in place for each trade. This should include the entry and exit points, the risk/reward ratio, and the overall objective of the trade.

6.Monitor Your Performance: Regularly review your performance and make necessary changes to your trading strategy. Make sure that your trading plan is still effective and that you are still following it.

7.Take Advantage of Opportunities: Be on the lookout for opportunities that can provide you with an edge. This could include taking advantage of unusual market conditions or news developments that could potentially move the markets.

Larry Hite on trend following

Larry Hite is one of the most influential trend following traders of all time. He is known for his pioneering work in developing trend following systems, which he has taught and written about extensively. In his books and articles, Hite explains the basics of trend following, including how to identify trends, how to set up trend-following systems, and how to manage risk. He also discusses the psychology of trading and the importance of having a disciplined approach to trading. Hite’s approach to trend following has been embraced by many successful traders, and his writings have become a cornerstone of trend-following literature.

Larry Hite’s books

Larry Hite has written one book: The Rule: How I Beat the Odds in the market and life.

Larry Hite trading rules

1. Cut losses short: Take losses quickly and move on. When you are wrong, be quick to admit it and get out of the position.

2. Let profits run: When you are right, don’t be tempted to take the money and run. Let the position run until it no longer meets your criteria for a winning trade.

3. Don’t trade too often: Don’t trade just to be active. Constantly trading leads to higher transaction costs and increased risk.

4. Don’t trade with borrowed money: Don’t borrow money to trade. This increases both the risk and the potential losses.

5. Manage your risk: Make sure you are managing your risk by having proper stop-losses in place.

6. Don’t over-trade: Don’t try to make too many trades at once. Too many trades can lead to over-exposure and increase the risk of losses.

7. Have a trading plan: Have a trading plan that outlines your entry and exit criteria. This will help you stay disciplined and make better trading decisions.

8. Don’t get emotional: Don’t let emotion influence your trading decisions. Be disciplined and objective when making trading decisions.

9. Don’t trade based on tips: Don’t rely on tips from other traders or financial advisors. Do your own research and make your own trading decisions.

10. Review your trades: After each trade, review the trade and try to understand what worked and what didn’t. This will help you become a better trader over time.

What is Larry Hite most famous for?

He is the founder of Hite Capital Management and is widely credited with being one of the earliest adopters of quantitative trading techniques.

Hite began his career in the early 1970s as a floor trader on the New York Stock Exchange. Throughout his career, he has developed an impressive portfolio of investments that includes commodities, stock indices, bonds, and currencies. He is known for his ability to identify and take advantage of market opportunities, often employing mathematical models and computer algorithms to identify and analyze trends and generate trading signals.

Hite is widely recognized as a pioneer in the use of quantitative and systematic trading strategies. His use of mathematics and computer algorithms in trading has become widely accepted and has revolutionized the way traders approach the markets. Hite has also been a prolific author and lecturer on the use of quantitative strategies in trading and investing.

Hite is also known for his philanthropy. He has donated millions of dollars to charitable causes, including educational institutions, healthcare organizations, and foundations. He is an advocate for financial literacy and has spoken publicly about the importance of financial education and the power of investing.

Hite’s legacy as a pioneer in quantitative and systematic trading strategies, as well as his dedication to philanthropy and financial literacy, have earned him a place as one of the most renowned and respected figures in the financial industry.

What is Hite Capital Management?

Hite Capital Management (HCM) is a private wealth management firm that provides investment services and advice to a select group of clients. Founded in 2003, HCM has quickly developed a reputation as one of the leading independent wealth management firms in the country.

HCM’s team of experienced professionals focuses on providing holistic and comprehensive wealth management services to individuals, families, and businesses. The firm’s services include portfolio management, asset allocation, estate planning, tax planning, and retirement planning. HCM also provides services related to insurance, philanthropy, and other related areas.

The firm utilizes a disciplined and strategic approach to manage its clients’ portfolios, taking into consideration their long-term goals, risk tolerance, and time horizon. HCM believes in diversification and seeks to create diversified portfolios that are tailored to each individual’s unique needs and goals. The firm also utilizes a variety of investment vehicles, such as stocks, bonds, exchange-traded funds, mutual funds, and alternative investments, to help meet its clients’ objectives.

HCM is committed to providing personalized, customized services that help its clients reach their financial goals. The firm’s team of experienced professionals strive to deliver a high level of service to each and every client. The firm’s services are designed to meet the needs of each individual, family, or business, and to provide a comprehensive approach to wealth management. HCM also provides access to a wide range of resources and services that are available to its clients.

The firm’s team of experienced professionals and its commitment to providing personalized services has helped HCM earn a reputation as one of the leading independent wealth management firms in the country. HCM is dedicated to helping its clients reach their financial goals and objectives.

Larry Hite – Market Wizard interview

He discussed his approach to trading, the markets, and the industry as a whole.

When asked about his approach to trading, Hite emphasized the importance of discipline and patience. He believes that it is essential to maintain a steady and consistent approach to trading, and to never let emotions cloud one’s judgment. Hite also believes that it is important to understand the markets, and to take a long-term view on trading rather than focusing on short-term profits.

Hite also shared his views on the markets, noting that he believes that the markets are constantly changing and evolving. He believes that it is important for traders to be flexible and adjust their strategies to adapt to changing conditions. He also believes that it is important to focus on quality trades over quantity.

Finally, Hite discussed the future of trading, noting that he believes that technology will continue to play a significant role in the industry. He believes that automation and algorithmic trading will become more prevalent and that individual traders will need to remain competitive by staying up to date on the latest developments in the industry.

Overall, Larry Hite has provided invaluable insight into the world of trading and the markets. His insights and wisdom will continue to be essential for traders who wish to succeed in the markets.

 


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