poor pete......remember him back at Lehman in 92-93. i remeber him being real reserved.....had a good operation going for him..... including a couple of jr brokers working for him and a couple cold callers......guy who worked with him named Pat Nolan was a brutal mother,,,,,,,r...........any cold call from him(Pat) was sure to leave the person on the other end of the line traumatized........ruff and tumble sales,,,,,,the good old days.......no caller id.....no no call lists.....loved it(smile).......sad too see Pete having to start all over after all these years
I knew Pete a long time ago, circa 1989-1990. He was a relentless cold caller. He wasn't know for conversation nor his charisma. He was very monotone and stoic most of the time. He started a hedge fund that earned him success in the 1990s, during this period anything you picked blindfolded went up 100x's so can't say his stock picking prowess really got him there. As they say, "A rising tide raises all boats" but in bad times if you can produce solid returns, your legit. Anyone could have made money during the 1990s, and quite frankly if you weren't in jail or living in a cave, you probably did. I know I did. I took heavy positions and traded daily it was addicting. Pete was at the right place at the right time. Things were good for awhile. However the market began showing signs of falling apart and by 2000-2001, the market soon refused to cooperate and went the other direction. It got way overheated and people started losing money quickly.
Pete's methodology if he had one was to keep buying on the dips because he believed as many times before, his stocks would recover. He was undaunted by the big swings and that's what killed him. Instead of bailing out and cutting losses, he held on. Those lofty gains were painfully erased and swiftly. He was at the helm of his fund with his brother who was inexperienced. By 2001-2004 his fund began a horrible descent into what can only be described as a death spiral. He never changed his strategy and kept buying, never selling. He was paralyzed in these large positions in key stocks. Only to be forced to liquidate at massive losses.
Subsequently, he was sued by his LP's (investors) and then evicted from his fabulous mansion in an awful way. Pete was a good salesman back in the day, but his performance as an investment manager is a bit more difficult to measure since it was during such a bubble.
More of a cautionary tale than anything else. The message? Don't be greedy.
poor pete......remember him back at Lehman in 92-93. i remeber him being real reserved.....had a good operation going for him..... including a couple of jr brokers working for him and a couple cold callers......guy who worked with him named Pat Nolan was a brutal mother,,,,,,,r...........any cold call from him(Pat) was sure to leave the person on the other end of the line traumatized........ruff and tumble sales,,,,,,the good old days.......no caller id.....no no call lists.....loved it(smile).......sad too see Pete having to start all over after all these years