How Larry Hite Made Fortunes Through Innovative Investing

Early Life and Challenges

• Born in 1941 in Brooklyn to Jewish parents.
• Grew up in a working-class neighborhood.
• Father was a partner in a small bedspread maker.
• Hite was visually impaired, blind in his left eye with poor vision in the right.
• Later diagnosed with dyslexia.
• Struggled in school and felt like a failure.
• Developed a philosophy to engineer actions to survive failures, central to his trading philosophy.

Influences and Support

• Father was an entrepreneurial role model.
• Had a supportive mother and nearby wealthy relatives.
• Developed a good sense of humor despite challenges.

Education and Realizations

• Struggled in high school but excelled in math through an oral test.
• Attended New York University School of Commerce.
• Paid bills by acting and selling movie scripts.

Light Bulb Moment

• Inspired by a professor’s discussion on commodities futures.
• Realized potential in trading commodities with small initial investments.
• Understood that diversified commodities futures could be less risky.

Career in Investing

• Graduated from NYU after six years.
• Worked as a stock brokerage order clerk.
• Recognized the gambling nature of Wall Street trading.
• Emphasized risk management with stop-loss orders.

Investment Philosophy

• Followed David Ricardo’s advice: "Cut short your losses, and let your profits run."
• Embraced trend following, riding the wave of rising stocks or futures.
• Used asymmetrical leverage for significant investments with minimal risk.

Major Investments and Success

• In 1975, invested heavily in coffee futures based on extensive research.
• Achieved significant profit, turning $1 million into $12 million.
• Lost all due to emotional decisions, learned to automate trades and diversify.

Establishment of Mint Investment Management

• Founded in 1981, collaborated with commodities futures giant ED&F Man.
• Achieved impressive returns, leading to significant global investments.
• By 1988, Mint had an average annual compounded return of 30%.
• Became the largest hedge fund globally in 1990.

Later Developments

• Founded Hite Capital in 2000, merged it with ISAM in 2010.
• Diversified into real estate.
• Accumulated a net worth of $100 million.

Recognition and Achievements

• Received a Lifetime Achievement Award from Hedge Funds Review in 2012.

Personal Insights and Advice

• Emphasized having written goals, advising on refining them periodically.
• Urged focusing on dreams over distractions.

About Scott S. Smith

• Published over 2,000 articles and interviews.
• Featured in nearly 200 media outlets.
• Interviewed notable figures such as Bill Gates, Richard Branson, and others.

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