Tom Baldwin (trader)
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Lucian Thomas Baldwin III is a bond trader investor and founder of the Baldwin Group of companies. He was described by the Wall Street Journal as the trader who can singlehandedly move the Treasury bond market.[1] His preferred instrument to trade is the 30-year bond in the pits of the Chicago Board of Trade.
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[edit] Career
After receiving his Masters degree in agribusiness Baldwin worked as a meat packer in Ohio. He took advice from a friend and moved to Chicago with the knowledge about trading he had obtained from a few courses taken at graduate school. With the USA experiencing high inflation in the early 1980s treasury bonds became a preferred market for hedgers and speculators resulting in high volume and trading activity. These bonds became Baldwin 's favourite instrument to trade and he leased a seat on the exchange.
As a full member director of the CBOT Baldwin has been a part of its executive comitte, CPO/CTA committe among many other executive positions at the exchange. He currently serves as Chairman of Baldwin Group Ltd, the parent company of several investment and financial services. Companies in the group include: Baldwin Commodities Corp., a Treasury Bond Futures proprietary trading company; and Baldwin Managed Futures, a CTA. Past firms include: Baldwin Asset Management Co., a real estate management company, from 1991 to 1998, MC Baldwin Financial Co., an international financial services joint venture between Mitsubishi Corp. and Baldwin Financial Corp. and Baldwin Development Co., a real estate joint venture with Chevron USA and ING Group, Holland, from 1990 to 1998
[edit] Quotes
In the words of Matt O'Connor, in a feature article written about Baldwin in The Wall Street Journal, (1985) Big Trader in Treasury Bond Futures Uses 'Wild Abandon' and Becomes Rich.[2]
| “ | Mr. Baldwin sometimes wins by trading against the tide, a strategy condemned in popular market wisdom as an invitation to disaster. One recent day, as T-bond futures surged by 10/32 of a point, Mr. Baldwin sold 1,100 contracts for future delivery of a total $110 million face amount of bonds -- a maneuver usually employed when prices are falling. By the time prices peaked, his losses on the position had mounted to $175,000. Then the market plunged 16/32 point -- converting Mr. Baldwin's losses to a $150,000 profit | ” |
[edit] See also
List of personalities associated with Wall Street
[edit] Notes
- ^ McMurray, Scott. "Tom Baldwin's Trades in Chicago T-Bond Pit Can Move the Market", The Wall Street Journal, February 4, 1991. Retrieved on 2006-08-26.
- ^ "Big Trader in Treasury Bond Futures Uses 'Wild Abandon' and Becomes Rich", The Wall Street Journal, May 3, 1985. Retrieved on 2006-08-26.
[edit] References
[edit] Magazines and newspapers
[edit] Further reading
- Schwager, Jack D. Market Wizards: Interviews with Top Traders, Collins: 1993, ISBN 0-88730-610-1
[edit] External links
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