Michael Platt reached the professional level at a young age. “I’ve had a very easy life,” he says, “because I never had to think about what I wanted to do, I wanted to be a trader since I was 12, and I started when I was 13 years old, Platt successfully continued trading in shares during school High school and college, with one important fact: his stock account lost half of its capital in a single day, the crack of October 19, 1987, this episode was the first and last time that Platt experienced a large percentage of losses .
After graduating from the London School of Economics in 1991, Platt joined JP Morgan, where he had an extremely profitable eight-year career, operating a wide range of fixed income derivatives, his success at the firm led to repeated promotions. Sometimes, culminating with his appointment as Managing Director in London, with the responsibility of leading proprietary trading relative value.
Platt left JP Morgan in 2000, along with William Reeves, to co-found BlueCrest, the company has had great success, reaching close to US $ 29,000 million in managed assets and close to 400 employees by the beginning of 2012. The majority of the assets are in two programs: a discretionary strategy headed by Michael Platt and a systematic strategy followed by Leda Braga, which joined the firm in 2001. The discretionary trading strategy has achieved an average annual net return of just under 14 %, the hallmark of BlueCrest’s performance is not its return, but rather its extraordinary risk control.
In 11 years of operation, the largest discretionary strategy peak through the reduction of equity has been below 5%, please note, this trajectory includes the financial merger of 2008, in which many high-risk funds They witnessed unique days with greater retreats. The benefit / risk of the discretionary strategy headed by Platt is off the charts with a Gain to Pain ratio of 5.6. (The Gain to Pain ratio is a measure based on losses, as opposed to volatility based on benefit / risk). The consistent and extended low risk numbers achieved by BlueCrest’s discretionary strategy are not a matter of chance, Platt is obsessive with risk control, is involved in his own trading and the design of every aspect of the strategy.
The discretionary strategy has maintained remarkably low losses through a three-tier process, combining a broad diversification of seven trading teams with different strategies and sectors, extremely at the losses of individual traders, and under the supervision of a team of seven people in risk management, Platt really takes risk control seriously.
Originally posted 2020-11-25 05:30:45.