Skip to comments.UK's biggest hedge fund star RETIRES with a $700m fortune - at the age of 41
Posted on 10/18/2012 7:43:38 AM PDT by dennisw
Australian Greg Coffey owns sprawling estate in Scotland and mansions across world Dubbed 'the Wizard of Oz', he announced resignation to investors after 20 years in the industry
At the age of 41, he is one of the UK's biggest hedge fund stars, having amassed a fortune of $700million.
But with mansion properties spanning the globe and a family to look after, he has decided to take early retirement.
Top City trader Greg Coffey announced in a letter to investors that he is retiring from Moore Capital Management, run by billionaire Louis Bacon, after 20 years in the industry.
Mr Coffey, once tipped as a successor to Mr Bacon, wrote: 'After nearly 20 years in the financial markets, Ive decided to leave the industry.
'The demands of my growing family mean that I am unable to commit to the market with the same intensity going forward.
'I plan on seeing much more of my wife and children and spending time in my home country, Australia.'
A source close to Mr Coffey told MailOnline that he was a 'very passionate man', who would often work throughout the night and day,
and after 20 years he felt it was time to leave.
The millionaire, from Australia, owns plush properties across the world, including a hunting estate on the Hebridean island of Jura, Scotland, and mansions in Kensington, London and Sydney.
Mr Coffey bought the sprawling Ardfin Estate on Jura in 2008, when it was on the market for £3.5million.
(Excerpt) Read more at dailymail.co.uk ...
Hats off to this rich guy who has his priorities right. I would do the same. Become a gentleman farmer but I would do it on huge scale ...say 50 million worth of farming, ranching ventures. Now he gets to relax and make more babies with his wife. The hi-IQ people need to have more children, spread their genes around
Plus he is moving to beautiful spacious Australia.
And how little will have have after Inland Revenue (British version of IRS) gets thru with him?
He didn’t build that!
My bet is he sees the global economic collapse coming and is executing his SHTF plan.
Australia is a great place to do this! And New Zealand is only 500 miles away. The Australian population is more civilized than us and will behave themselves if the SHTF
Yes, I'm serious. It required perfect knowledge of the market, but my point is that it was possible:
Transaction fees aren't included in this example, either. However, you can get the per-share fee down to almost nothing when trading large blocks of shares.
Finally, if we were to expand this to 7 simple steps, we could add one small optimization: Sell your AAPL holdings on 2007-12-28, pay 15% capital gains taxes, and reinvest everything again in AAPL on 2008-11-20.
That would increase your holdings to 8,112,577 shares of AAPL, which would be worth $4.445 billion, after taxes. It would be $5.2 billion before taxes, putting you #63 on the Forbes 400 list.
If you had used a Traditional IRA and avoided capital gains taxes on each sale, you would have $9.6 billion, before taxes, with the 7-step plan. However, to withdraw it from the IRA, you would have to pay ordinary income taxes (and possibly a 10% early withdrawal penalty, but I'll skip that).
If you withdrew everything at yesterday's closing price, you'd have to pay $3.36 billion in income taxes, leaving $6.25 billion to spend as you please. You would be #56 on the Forbes 400.
Now, all you have to do is invent a machine that sends a message back to yourself a bit more than 26 years ago. If you instead sent winning lottery numbers, everyone would know your name. But, after that initial purchase of MSFT, you would be able to do all your transactions online, and the shares would be held in the name of your brokerage. No one would know except who you chose to tell.
Would like to find someone like this https://en.wikipedia.org/wiki/Hillary_Rodham_cattle_futures_controversy . In 4 years, should be worth $100B with $1000 up front, not factoring in taxes. But could deal with that.
Just small variances in the date of the transactions I described would have a significant effect on the outcome. In one model, I used the average closing price for the week of the hypothetical transactions, rather than the highest closing price on a single day, and it reduced the final total by about 20%.
However, there would be a lot of volatility, and you would have to have a lot of patience. And fight a lot of temptation to spend some of it. :-)
Would have to say the second approach leads to almost certain results, particularly since some of those trades might have been posted after the event. Seems better to stick with a sure thing. Doesn’t it?
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