When S&C first spoke to hedge fund manager Mark Boucher in 1996, he shared some of his techniques for analyzing the economy, picking stocks, and money management. See what he says this time.
Refresh our memories with
a bit of your history.
Sure. I started trading
stocks and commodities
when I was in high school. My father
died when I was nine, and he left me a
trust fund. The manager of my trust was
looking after my college fund. Unfortunately,
the stock market fell apart starting
in 1973 and the bank managing my
trust stayed 100% invested during the
bear market. My account lost about 90%
of its value.
You told me that last time, and it still
hurts to hear it.
Me, too! I realized that I was going to
have to find a way to make the money
that was left go a long way. So I started
trading the commodity markets in the
You were hoping to, in a sense, leverage
I wanted to make as much money as I
could. Fortunately or not, I plunged into
trading commodities. If you recall, during
1978 and 1979, the commodity markets
shot up. I made quite a bit of money.
In the next few years, though, I gave
about half of it back before I realized
that I had just been lucky in that period.
I realized that I had a lot to learn if I
wanted to create consistent performance.
It became clear to me that the bull market
was the genius, not me.