At 74 years of age, Michael Steinhardt is one of the most renowned and accomplished hedge fund managers in the world.
Michael Steinhardt is a Jewish University of Pennsylvania graduate who, in the words of author Sebastian Mallaby, “[is] a legend in the story of hedge funds, partly because of his success as a trader, but also because of his personality.”
Steinhardt’s father was a compulsive gambler with close ties to the criminal underworld, eventually charged with the purchase and sale of stolen jewellery and sentenced to up to 10 years in prison.
Steinhardt himself graduated from the University of Pennsylvania in 1960, with his own father acting as his first investment client in the stock market.
Michael Steinhardt started his career with firms such as Calvin Bullock and Loab Rhoades & Co.
It wasn’t until 1967 that he co-founded his own hedge fund company along with other notable traders Howard Berkowitz and Jerrold Fine.
After many successful years, Steinhardt, Fine, Berkowitz & Co became simply Steinhardt Partners when Berkowitz and Fine left the partnership in 1979.
In 1995 Steinhardt decided to shut down the business after making an incredible 21% profit in the final year.
Throughout his career Steinhardt has donated more than $125 million to various Jewish charities and organisations, as well as co-founding the Taglit-Birthright Israel organisation.
At present Taglit-Birthright Israel has sent more than 500,000 young Jewish people on trips to Israel without charging them a penny.
Steinhardt published his autobiography in 2001, entitled No Bull: My Life in and out of Markets.
This telling autobiography reveals a great deal of previously unknown information about his father Sol Frank Steinhardt.
Interestingly, the autobiography implies that Michael Steinhardt’s education at the Wharton School may have been paid for with money his father made through illegal activities.
In an industry where many individuals crash and burn, losing all of their fortunes, Steinhardt’s most notable achievement is perhaps ending his career with his wealth intact.
More impressive is the performance of his Steinhardt Partners, which is still an outstanding track record today.
Steinhardt Partners boasted 24% compound average annual returns over a period of 28 years. This is more than twice that of the S&P 500!
Steinhardt has successfully tried his hand with just about every imaginable form of financial instrument, crafting his incredible performance record with bonds, currencies, stocks, and options, all across a variety of time frames from the short-term to the long-term.
There is no denying that Michael Steinhardt remains one of history’s most gifted and diligent investors, and the legacy he leaves behind will surely resonate throughout Wall Street for many decades to come.
Source:: Trader Fact File Michael Steinhardt