Michael Platt keeps winning despite these challenging and volatile times for investors. He is one of the few people at the top end of the Sunday Times Rich List which has seen their wealth grow in the pandemic crisis.
The UK’s richest hedge fund manager saw his wealth rise by around £1bn last year, according to the list of the 1,000 wealthiest people or families resident in the UK ranked by net wealth.
Michael Platt’s flagship fund Bluecrest Capital Management, Europe’s third-largest hedge fund, returned a sizable 50% in 2019.
Michael Platt’s Bluecrest Capital Management has raked in 17 billion USD of trading profits for his investors, or 350% return since its inception.
Michael Platt, the UK’s richest hedge fund manager with a real networth of $8B claims that he has never suffered an annual loss.
“TMichael Platt, the UK’s richest hedge fund manager with a real networth of $8B claims that he has never suffered an annual loss”
WEALTH TRAINING COMPANY
Michael Platt keeps winning, and his three years of double-digit gains confirm his top-scoring track record
In 2018 Michael Platt’s flagship fund Bluecrest Capital Management returned 57%, a few years before that 20% in 2016, and another 50% last year in 2019.
With those wins under his belt, Michael Platt comfortably holds the UK’s heavyweight champion hedge fund manager.
Michael Platt keeps winning but could his string of wins, despite spanning over several years be not much more than a gambler’s lucky streak
The UK’s top hedge fund manager believes he has discovered an alpha formula, which enables him to outperform the benchmark index and his peers.
Michael Platt’s alpha formula is a guide to the top trading lessons for traders
The billionaire trader, hedge fund manager, Michael Platt’s golden rule is to cut his losses early before they wreak havoc on the funds bottom line.
“I have never hit three percent drawdown” said Michael Platt in his interview on a business network.
“I have never hit three percent drawdown”
In other words, Michael Platt accepts that he can get it wrong and make loss-making trades, but he recognizes that remaining wrong over a long period is what throws players out of the game.
“Ego is how you lose money in this business., I put a trade on and if it doesn’t start working right away, I respect the price action and cut it fast” said Michael Platt
Michael Platt keeps winning but he also keeps his ego in check
In fact, Michael Platt believes that a trader’s ego is his handicap and he instead prefers to act within the confines of a trading plan which is then practiced diligently by his trading team.
“One of Blue Crest’s secrets is to make sure that each of their traders doesn’t go below three percent drawdown, or they are deprived of 50% of their portfolio that they manage” – Michael Platt
“One of Blue Crest’s secrets is to make sure that each of their traders doesn’t go below three percent drawdown, or they are deprived of 50% of their portfolio that they manage” said Michael Platt.
Michael Platt and his trading team cut their losses early and they let their wins run
What’s more, if his traders go below the mandated 3% drawdown the first time the trader is warned, the second time, and the trader is fired.
Another drawdown of 3% (making a total of 6%) and the trader loses his entire allocation,” said Michael Platt. In other words, the trader is fired.
The essence to Michael Platt keeps winning formula is that the billionaire trader hedge fund manager ensures that no losing trade has a drawdown of more than 3%
Moreover, by cutting losses early, Michael Platt’s Bluecrest Capital Management has accrued no losses since its inception.
“In the course of making 350% for our investors we have made a maximum drawdown of 4% over 11-year history with no down years” said Michael Platt.
“We are traders and don’t take any credit risk so we are super liquid” – Michael Platt
Michael Platt keeps winning because he cuts his losses early but that also implies that he only trades assets in highly liquid markets
When markets are illiquid traders don’t have the option, the luxury of cutting their losses early.
“We are traders and don’t take any credit risk so we are super liquid” said Michael Platt.
Michael Platt, has an impeccable trading record which has elevated the billionaire trader to 11 places to 24th on the UK’s rich list as his fortune climbed £1.1bn to £4.8bn. Michael Platt’s Bluecrest Capital Management’s strong performance of his fund, which returned 50% on capital in 2019 has been his elevator up the rich list.
Michael Platt’s flagship fund was closed to clients four years ago but remains open as a personal investment vehicle. Most of the funds stella performance last year, 2019 came from long positions in fixed income.
In other words, Michael Platt has been front-loading the central banks’ currency creating bond purchases programs, known as quantitative easing which has created a bond bubble and profits in the form of capital appreciation for bond investors.
Michael Platt is among the few super-rich billionaires who have seen his wealth grow during the pandemic and in doing so has managed to climb up the rich list.
According to the Sunday Times Rich List, the super-rich have lost more than £54bn in the pandemic 2020 stock market crash, as of May. Although that amount has been reduced due to an unprecedented amount of central banks QE to keep asset prices propped up.
Nevertheless, two-thirds of billionaires are seeing their wealth flatline or fall over the past year, according to the report. But the pandemic is also distorting the data, so it yet remains to be seen whether this is a blip or a long-term trend.
So, Michael Platt keeps winning and when lady luck stops smiling, he makes sure he is trading liquid markets so that he can cut his losses early, thereby avoiding potentially crushing losses to his portfolio.