Quick take:
- The Co-Founder and CEO of Bitmex, Arthur Hayes, has just published his most recent crypto digest.
- In the extensive post, Mr. Hayes explained that Paul Tudor Jones owning Bitcoin will remove career risk from fund managers owning Bitcoin risk.
- In one swift decision, Paul Tudor Jones normalized fund managers investing in BTC.
Users of the popular derivatives platform of Bitmex regularly receive email digests from the Co-founder and CEO of the exchange, Arthur Hayes. In the most recent edition, Mr. Hayes muses on how the recent move to own Bitcoin by the legendary Paul Tudor Jones, took off a heavy load from the shoulders of fund managers across the globe.
Paul T. Jones Owning Bitcoin Removes Career Risk from Fund Managers
Hayes explained that in one swift move, Mr. Jones’ decision to hedge against inflation using Bitcoin removed career risk from fund managers who are often judged from their past performances trading the markets. The move by Paul T. Jones normalized owning Bitcoin risk by fund or portfolio managers.
Paul Tudor Jones (“PTJ”) is a trader with a capital f*cking T.
His homage to why inflation is coming and Bitcoin is a possible way to outperform inflation in the coming years is very important because it removes career risk from fund managers owning Bitcoin risk.
Fund Managers Try To Think Like Legendary Traders
Arthur Hayes went on to explain the career of an average fund manager using his own example rising up the ranks. Hayes explained that being a fund manager was not as exceptional as many people believed and perhaps the only advantage they have over other graduates, is the school they went to.
Nothing about your career path [as a fund manager] is exceptional in any way.
You aren’t a brain surgeon, any type of engineer, or a well-regarded public servant.
You went to a nice school, got a well-paying job, and survived.
He went on to explain that average money managers spend plenty of time researching prominent fund managers in a bid to better understand their strategies. In the case of Paul Tudor Jones, he has already established himself. Therefore, fund managers willing to own BTC, or a derivative of Bitcoin, can now do so with ease because investors now know it is not an unorthodox investment. Mr. Jones took all the risk by being extraordinary with the decision to own BTC.
As with all walks of life, there are a few truly exceptional money managers.
They first preserve your capital, and second, earn a positive absolute return.
PTJ is one of them.
Average money managers pour over the writings of the gods, and try desperately to think like they do.
But we know in the back of our mind, they are average. They are average and average pays f*cking gloriously. Why would you want to be extraordinary and expose yourself to career risk.
(Feature image courtesy of Unsplash.)