What was your worst historical investment experience, and what risk management lesson did it impart?

Sir Paul Marshall
Replied bySir Paul Marshall

Co-Founder, Chairman & CIO at Marshall Wace

Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: London, England, United Kingdom
Started: 1997

My most severe career drawdown occurred during the 1990 Gulf War when I accumulated a massive long position in oil services equities ahead of military action. The subsequent market reaction severely damaged portfolio returns, teaching me a permanent lesson regarding the dangers of excessive single-theme concentration and the necessity of strict portfolio-level risk management.

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