In this discussion, Chris Brown, CIO and founder of Aristides Capital, shares his remarkable journey from Air Force doctor to hedge fund success, boasting a 16-year record of no losing years. He highlights how meticulous strategies, hiring passionate talent, and rigorous performance analysis have driven their 1,000% returns. Brown emphasizes the importance of relationships with high-net-worth and institutional investors, while stressing the need for transparency and authenticity in the investment process—all delivered with an engaging sense of humor.
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question_answer ANECDOTE
Launch Story
Chris Brown took a $30,000 cash advance on his credit card to launch his fund in August 2008.
Early investor and author Andrew Tobias significantly impacted Aristides Capital's success.
volunteer_activism ADVICE
Bear Market Launch
Launching a fund during a bear market, like the 2008 financial crisis, can be advantageous.
Investors are more open to new strategies when their existing investments are performing poorly.
volunteer_activism ADVICE
Early Fundraising
Secure as much capital as possible at launch to build a strong track record.
High-net-worth individuals (HNW) are valuable early investors; they're less rigid than institutions and offer referrals.
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Market Wizards is a must-read for traders and financiers, offering a deep dive into the strategies and mental attitudes of the world's most successful traders. The book includes interviews with traders such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, and others, revealing their approaches to trading and the factors that contribute to their success. It covers a wide range of markets, including treasuries, futures, commodities, and more, and highlights the importance of solid methodology and proper mental attitude in trading[2][4][5].
The Best Little Boy in the World
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Andrew Tobias
The Only Investment Guide You'll Ever Need
Andrew Tobias
This book, fully updated to include topics like cryptocurrency, NFTs, Robinhood, GameStop, the after-effects of COVID, and climate change's impact on investing, offers sensible and understandable tips on personal finance. Andrew Tobias emphasizes the importance of frugality, budgeting, and long-term investing through low-cost index funds. The book advises readers to avoid get-rich-quick schemes, reduce spending, and make smart financial decisions to achieve financial security. It also covers various aspects such as tax strategies, family planning, and the risks associated with different investment options.
Since Aristides Capital’s inception in August 2008, Chris Brown has returned over 1,000% for their investors with a stunning 16-year track record of no losing years. In this interview with Max Wiethe, Brown explains how they’ve been able to sustain these results and grow their business to over $300m in AUM all while operating far from the typical financial centers where hedge funds cluster. They discuss how accumulating a plethora of lower capacity strategies, hiring and working with “well intentioned nerds,” and maintaining rigorous processes for post-hoc analysis and feedback have been some of the keys to their investment success. They also touch on asset gathering from both HNW and institutional investors, attracting talent, and the reality that for small funds being in the top quartile or even decile of performance is a near necessity for reaching critical mass.
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Monetary Matters with Jack Farley 
