Jun 12, 2012
Tony Bazile of Intrinsic Capital Management is a trend following trader specializing in stocks. Michael Covel talks to Bazile about his background, which is unlike anybody profiled on the podcast so far: He was a professional water skier into his 20s. After observing another water skier trading on the sidelines and making a ton of money, Bazile decided to look into trading for himself. He made quite a bit before the tech bubble burst; when it popped, he was left with the feeling that there was still plenty of opportunity, and he forged forward. He moved to New York with his then-girlfriend and wound up living directly behind the American Stock Exchange, where he spent six or seven months handing out his resume (litetrally on the streets to Wall Street warriors). Eventually, he found himself working for John Mulheren. Bazile relates a story where Mulheren went on vacation after taking a large position. When Mulheren's team sold 80% on the second day of what would become a three week rally, Mulheren returned from his vacation furious, and Bazile learned one of his most valuable trend following lessons. This sent him down a path where he visited Bill Dunn in Stewart, Florida, and eventually ended up working for Ken Tropin at Graham Capital. Tropin told Bazile: "I'm good because I know that I don't know which way the markets are headed." After managing money for Graham Capital, Bazile left and partnered up with David Frakes, and formed Intrinsic Capital Management. ICM uses a trend following strategy to trade stocks, and Bazile and Covel discuss dealing with the sheer volume of information on individual stocks; and how trend following is the strategy, not the instrument. Covel also traces the lineage from Richard Dennis to Jerry Parker to Salem Abraham, and from John W. Henry to Ken Tropin to Tony Bazile. Only time will tell!