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Larry Hite is a long-time successful hedge-fund manager who doesn’t believe he — or really anyone — can predict what the stock market (and other markets) will do next, or which seemingly successful companies will suddenly crash. (Just remember Enron, he says.)
Nor does he care much for Wall Street’s standard buy-and-hold advice for small investors.
Rather, the 78-year-old has become fabulously wealthy using computer programs to detect and follow price trends — and by following one simple rule: cutting his losses early. He founded Mint Investment Management Co., and the composite of funds achieved a compounded annual rate of return above 30% before fees during his 13-year run there. He now runs Hite Capital, a family wealth