School of Hard Knocks Podcast John Devaney | He Lost $200 Million in 2008...Then Made It All Back
Jul 21, 2025
John Devaney, a bond trader turned film producer, shares his incredible journey. After losing $200 million in the 2008 crisis, he rebuilt his fortune and launched a $200 million fund with remarkable returns. He emphasizes the resilience needed to recover from financial loss while balancing family values. Devaney also discusses his transition to filmmaking, highlighting projects like 'City of Dreams' that tackle social issues, and 'The Prince,' which explores personal redemption. His commitment to authenticity and mentoring the next generation shines through.
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First Big Trading Win
- John Devaney used $3,000 from a scholarship to make his first big options trade in college.
- His initial trade on Motorola stock paid off massively, fueling his passion for trading.
Brokerage Peak Success
- At its peak, John's firm made $130 million in revenue and $110 million in profit.
- They specialized in illiquid, structured finance bonds and ran an efficient principal trading operation.
Profit in Illiquid Markets
- Illiquid markets create high-profit opportunities for specialized traders.
- Being a principal buyer in underserved bond sectors allowed John to dominate with less competition.
