The Entrepreneur and the Trader
I recently spoke at my daughter's high school career day. Understandably, they needed to put a label on what I do. I struggle a bit each time someone asks my title: What am I - a Trader, Risk manager CIO, CEO, Fund Manager? Perhaps all of that, but in the end I am an entrepreneur.
For career day, I chose not to worry about title, and focused instead on the message I hoped to give. Kids today are much more savvy about what an entrepreneur is (as well as everything else), but they are given very little opportunity to learn about it in the school curriculum - a crying shame. As such I didn't want to scare them off - but perhaps lure them in with the idea of an interesting career in trading before getting to the challenges of running your own business.
Career day got me thinking about my own path. While I identified with the vocation of being a trader while working at large institutional investors, the decision to start my own shop was pure entrepreneurship. It’s no different from someone who starts in a steel yard and ends up running a company or the programmer who develops a more efficient way of communicating, selling or getting a ride.
Since starting Auspice, I’ve realized that being a trader provides a very similar development path to that of an entrepreneur. Both are about managing risk and often making decisions very quickly, dealing with consequences immediately. Yet, while seemingly a perfect setup to being an entrepreneur, the big difference is, once you decide to hang your own shingle, you are forced to make broad decisions in every facet of business. Business development, sales, accounting, marketing, finance, operations – they’re all your responsibility, not just "trading". It doesn't matter what type of business you start - the ability to sell and communicate what you do while building relationships is mission critical. Ideally, you do this while offering something unique and innovative.
However, just because you’re a good trader or steel worker or programmer, there’s no guarantee you’ll be a good business person or entrepreneur. It requires a broad base of skills and the humility to understand what you’re not good at, so you can hire people who bring the experience you lack. Many traders simply aren't cut out to be an entrepreneur.
Going from employee to owner requires extreme commitment and sacrifice. It’s a lifestyle choice for you and your family. Your compensation won't be a straight line - it will be lumpy. Thus, it must be your passion.
The more I’ve thought about it, the more I’ve realized that while I am a trader, risk manager and CIO, what I am most proud of above everything else- is that I am an entrepreneur.
And here is the personal difference: every time you do business with an entrepreneur as opposed to an institution, an actual personal does a little happy dance and is proud.
Disclaimer
IMPORTANT DISCLAIMERS AND NOTES
Futures trading is speculative and is not suitable for all customers. Past results is not necessarily indicative of future results. This document is for information purposes only and should not be construed as an offer, recommendation or solicitation to conclude a transaction and should not be treated as giving investment advice. Auspice Capital Advisors Ltd. makes no representation or warranty relating to any information herein, which is derived from independent sources. No securities regulatory authority has expressed an opinion about the securities offered herein and it is an offence to claim otherwise.
COMPARABLE INDICES
Auspice Managed Futures Excess Return Index (AMFERI): The Auspice Managed Futures Index aims to capture upward and downward trends in the commodity and financial markets while carefully managing risk. The strategy focuses on Momentum and Term Structure strategies and uses a quantitative methodology to track either long or short positions in a diversified portfolio of exchange traded futures, which cover the energy, metal, agricultural, interest rate, and currency sectors. The index incorporates dynamic risk management and contract rolling methods. The index is available in total return (collateralized) and excess (non-collateralized) return versions.
Returns for Auspice Managed Futures Excess Return Index (AMFERI) represent returns calculated and published by the NYSE. The index does not have commissions, management/incentive fees, or operating expenses.
The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. Price Return data is used (not including dividends).
60-40 Portfolio: 60% investment in SPY (S&P 500), 40% investment in IEF (intermediate-term US Treasuries), rebalanced monthly.
QUALIFIED INVESTORS
For U.S. investors, any reference to the Auspice Diversified Strategy or Program, “ADP”, is only available to Qualified Eligible Persons “QEP’s” as defined by CFTC Regulation 4.7.
For Canadian investors, any reference to the Auspice Diversified Strategy or Program, “ADP”, is only available to “Accredited Investors” as defined by CSA NI 45-106.