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Title: Timothy Sykes and "An American Hedge Fund"
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Published: 07 Aug, 2007 23:37 PT

An American Hedge Fund by Timothy SykesA little more than a month ago I received an email from someone named Timothy Sykes telling me how much he liked our site - especially the educational aspect of it. The name sounded oddly familiar but it didn't ring a bell until I read further. So as it turns out, Timothy Sykes is also known as "The Bar Mitzvah Boy", who came to Wall Street stardom after he turned his $12K Bar Mitzvah gift money to about $1.65 Million in audited earnings by trading microcap stocks. He then founded his own hedge fund, Cliantro Fund Management, LLC when he was still a college senior in 2003. But that's not enough for Sykes. According to his introduction, Cilantro was named the #1 Short Bias Hedge Fund for 2003-2006 by Barclays. And in 2006, Sykes was named as one of Trader Monthly Magazine's "Top 30 under 30". He also starred in the television documentary "Wall Street Warriors" and made regular guest appearances on CNBC. And all that was said and done ... before his 27th birthday. To say Sykes has a life less ordinary is a definite understatement. Inspired by his own experiences as a stock operator and hedge fund founder / manager, he decided to write a book that will, in his own words: "smash the boring finance stereotype to pieces"! To my delight, he offered to send me an advance copy of his book for feedback. Who am I to resist this offer? An autographed copy of his book, titled "An American Hedge Fund", arrived in the mail a few days later. I promised him that I will not disclose too much about the book until closer to its release in early October, 2007, but I can say that is was quite an interesting read and it took me no time to finish it. It's also fair to say that Sykes' book offers intrigue and learning oportunities while being fun and engaging at the same time. Not bad for a first-time author! To learn more about Timothy Sykes and his new book, check out his home page at: http://www.timothysykes.com/.
           
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Reader Comments
Daniel
02 Nov, 2007 09:57 PT
I couldn't understand some parts of this article , but I guess I just need to check some more resources regarding this, because it sounds interesting.
Mike Greenberg
28 Oct, 2007 12:37 PT
I read Sykes book and did not enjoy his "story". Many other better books out there by people who are actually successful traders.....
Norman Lunden
25 Oct, 2007 09:13 PT
Update to the Sykes saga. He has been reported to the SEC for posting on message boards attacks against a company he made a short recommendation against on thestreet.com

How he swindled that side into giving him a podium is anybody's guess. I imagine he fancies himself ala Jim Cramer, but where he tries to match Cramer in terms of bluster and self-aggrandizement he lacks Cramer's obvious deep well of knowledge and ability to educate about the markets which is something Sykes cannot do. I hope Cramer knows Sykes used his site and then bashed the same pick on Yahoo and Raging Bull message boards immediately after to reinforce the chances of success for his short recommendation.

This kid is the sleaziest thing to hit the financial media in a long time and that is saying something.

Just say NO to Tim Sykes.

And if you haven't already seen his now classic laughing stock of Wall Street series of emails published on TraderDaily.com go look them up. They are excruciatingly embarrassing.
A.J.
27 Sep, 2007 13:47 PT
Tim Sykes,
It is not your LOSING MONEY but it your LOSING HEART that makes me wonder if you ARE A MAN AT ALL...

Almost every good/great trader had big losses and came back. BUT YOU SIR simply RAN away and are TRYING to FIND another profession..
that's SIGN OF A LOSER..

If your story had shown even a slight iota of grit in you it might have been worth read.

But You are just another loser..Many people make a fortune in markets.
and as they say Markets GIVE and take back with same ferocity...

I just hope you have a better luck as a writer (which btw doesn't look like happening as of now)
Steve B.
22 Sep, 2007 20:09 PT
Loser Sykes Luck Runs Out and Self Publishes Book To Make Some Money Off Of Newbies and Suckers.....

Maybe Timothy Sykes will find some type of work which will allow him to succeed; but trading and self-publishing books will not allow him to actually contribute to society, and Sykes admits that he continues to lose OPM.

After reading Sykes book, story can be summarised in a nutshell:

1) Timmy made money trading the NASDAQ bubble(along with everyone else), and he did not demonstrate good money management. Basically, "lucky monkey" effect....

2) Timmy has not made money trading in the last 5 years because his luck ran out, and the bad risk management.

3) Timmy is trying to make money off his '99-'02 track record, while lying about his trading failures over the last 5 years.

4) Timmy has averaged less than 1% annual return with his Sykes/Cilantro "hedge fund" since 2003. So, investors would have been better with interest bearing checking account.

5) Timmy lies that "..my Fund bleeding has stopped...", but actually he lost his investors very large amounts of money throughout 2006-07, including continuous losses every month of Summer 2007. Sykes Fund "Bleeding" has not stopped, but rather continues as Sykes has lost over a third of his investors money since Jan 2006.

I just saved you the $20 book fee. Book is not worth reading even if you get it for free....
J. Stevenson
20 Sep, 2007 13:08 PT
I also like Tim Sykes as wacky entertainment, but he is getting a little more emotionally unstable, such as insulting any reader of the book who is unimpressed, and demanding that Amazon delete any bad book reviews...kind of weird...I think Tim is trying to milk his "TV fame" the best he can.

Book describes the infamous 250K "loan" from his hedge fund to nearly bankrupt Cygnus E-Transactions (CYGT.PK) and his additional purchase of shares which was amazingly ignorant and possibly illegal! Normal people do not have such bad judgement, so Tims "advice" rings hollow!

After losing over one third of their money, I feel sorry for Sykes poor investors.... I guess Tim is only good for more wacky entertainment as our favorite attention whore!!
Mike Fagen
15 Sep, 2007 20:00 PT
Just finished reading this mediocre book. Its an empty and uninspiring story about Tim Sykes, a self-absorbed irresponsible stock trader. This book is NOT a "classic" and story is NOT "Rocky-like"(as author Sykes claims).

Sykes put the term "stock operator" in title in order to confuse all future book searches for Jesse Livermore's excellent story (Reminiscences of a Stock Operator, by Edwin Lef
Mike Anderson
13 Sep, 2007 11:00 PT
SYKES said:"Once you read my book, you'll see stock picks don't matter, what matters is your ability to profit from patterns that repeat, time and time again."

OUR REPLY: Tim, Do you expect us to believe that you have found profitable patterns in financial data without any knowledge of quantitative analysis or equity analysis? Here we are (all of us at hedge fund other than Cilantro Fund Partners) spending zillions of dollars on financial data, quants, equity analysts, sell-side research and supercomputers, trying to find a pattern (any pattern) that can give us a slight edge on the market, while you have managed to discover such patterns all by yourself and without any education or resources. And, joy of joys, you will soon be giving away your secrets to the public in the form of a $20 book.

I think what really happened is that you've given up on trying to analyze individual companies, because that's just too much work and too boring (who wants to think about businesses when we can be making money instead?) But you still need to sell some kind of snake oil to your audience and your hedge fund investors. And that snake oil is ... chart reading. Couldn't you have been at least a little original, Tim? Of course not, you're too dumb for that sort of thing.

I would say that at least one person will lose his life's savings because of your book, and will probably kill himself. But let's face it, there are hundreds of thousands of phony books about investing, written by con men like yourself. I guess nothing can stop a sucker from parting with his money, but you are making it just that much easier for him.
Abe Stein
13 Sep, 2007 09:01 PT
Tim Sykes:BadTrader/WorseWriter
I read his book and found his story boring and meaningless. Book is NOT worth $19! Sorry Tim but book is NOT a Classic!

NOTE: Sykes/Cilantro Fund Lost -36% since Jan2006!
Steve Cohen
11 Sep, 2007 14:02 PT
I read Sykes book and was psyched when I started, but was quite disappointed by the time I got done. Nothing really new or earth shattering in it. I got it for free so it wasnt so bad.....but wouldnt pay 20 bucks for it. Much better "reads" out there.
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