Despite working as a financial journalist, the last thing I want to do is curl up over the weekend with a book on finance. After reading hundreds of press releases, analyst notes, financial news articles, industry websites and blogs over the course of the week, I am loathe to read something long-form about finance on my own time. I prefer Neil Gaiman or Chuck Palahniuk, personally. But when I was contacted by Timothy Sykes, who had what seemed like an interesting hedge fund story to tell, I made an exception and decided to give it a shot.Sykes's book, An American Hedge Fund, is an interesting autobiographical tale of his trading life to-date. It's only around 250 pages long, mostly because Sykes is only 26. That's not to say he hasn't been trading a while -- he begins the book by chronicling how he began trading while in High School, using the library's Internet connection to research his picks.
The book is not a typical "how-to" guide to becoming a millionaire, although Sykes does detail some strategies that got him where he is today. More interesting, perhaps, is that he is able to set aside his ego and detail his trading flaws and the colossal failures they led him to make, which occasionally gives the book a "how-not-to" feel. Although Sykes's trading style, which focuses heavily on day trading risky micro-cap companies and on short selling, is worlds away from my comfort zone, which is much more large-cap value oriented, that doesn't mean I didn't learn and appreciate from seeing how his mind and his trading desk operate. I may have appreciated his technique more due to the stark contrast to my own.
What is most interesting about Sykes's style is watching it change over his career. Sykes's trading career spanned some of the most interesting market swings in recent history. He began trading during the Internet boom, learning about momentum and hype, he continued through the Dot Com bust, learning how to short, and he successfully made it through the financial aftermath of 9/11. He doesn't give the reader an immense amount of data to digest, skipping macroeconomic lessons and long-winded trading theories for the trial-and-error approach that made him successful. Reading An American Hedge Fund is following Sykes on his journey and appreciating his ability to capitalize on, a journey that can teach the average investor a lot about the way the market functions and how hedge funds operate.
Finding an informative book about the financial world is easy -- finding one that is interesting to read is not. An American Hedge Fund manages both effortlessly. Skyes's book is simultaneously an autobiography, a how-to guide, a motivational manual and a defense of his industry; and most importantly of all, a captivating read. The only fault is that it does not seem finished, but from a trader that has not yet hit 30, how could it be?
An American Hedge Fund is now available for pre-order on Amazon.com.











Reader Comments (Page 1 of 2)
9-13-2007 @ 4:26PM
John Agrawal said...
I just read Tims book; summary in a nutshell:
1) Timmy made money trading the NASDAQ bubble (along with everyone else).
2) Timmy has not made money trading in the last 5 years.
3) Timmy is trying to make money off his '99-'01 track record, while lying about his trading failures over the last 5 years.
I just saved you the $20 book fee.
9-13-2007 @ 10:13PM
Tim Sykes said...
Everyone please don't listen to that previous comment--the guy's been posting on every board wherever my book is reviewed and he posts the same BS while not even having read my book. Doesn't he realize I created my publishing company, BullShip Press, to cut through all the industry's BS!!! Buddy, we're on the same side, stop trying to cut me down and take a week to read the book to see I'm not lying. Please.
9-13-2007 @ 10:14PM
Tim Sykes said...
And by the way, 2006 was my first down year out of the past 8 and I detail my mistakes in full. Wow, I can't believe how desperate some of these guys are to try and rip somebody down. It's sad really.
9-14-2007 @ 12:49PM
James Coyne said...
I also 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. It was boring and meaningless.....
I wouldnt recommend paying $20 for it. Much better "reads" out there.
People should know that Sykes/Cilantro "Hedge Fund" is DOWN -36% since Jan2006; and Tim is not regarded as a very good trader or writer.
9-15-2007 @ 8:38PM
Mike Fagen said...
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 Lefèvre (1923)). This cheesy trick might help book sales, but needless to say, Sykes has nothing in common with the great trader Livermore.
Sykes comes across like a hyper/immature/video player-type Trader, which worked for him for a few years; then the law of averages caught up with him. His "return to the mean" continues during the past two years; and his very poor investment strategies are DOWN -36% since Jan 2006. His continous bad performance throughout 2007 shows that he does not learn from his mistakes; and readers can only cringe while watching Sykes slow motion demise.
9-15-2007 @ 10:16PM
tim said...
Apparently I did something to these haters because they follow me around whenever I get a positive review and they post the same BS--I'm sick of it. Please don't listen to them, maybe I stole their ex-girlfriends or something.
9-17-2007 @ 4:38PM
Walter Becker said...
Sykes book is a poorly written life story of a failed trader who has fallen on hard times.
Beware of all the phony glowing reviews for Sykes Book. Its the good ole boy network in high gear where authors/investment advisers use the buddy system to give fake good reviews to each other.
Not worth $20! (I like Tim, and hope he eventually finds a career through which he can succeed).
9-18-2007 @ 7:50AM
Tim Sykes said...
Good ole boy network--u gotta be kidding me, if you had read my book, you'd see that I have 0 connections. My 150+ glowing testimonials came from people I've never talked with. C'mon haters, you're gonna have to do better than that--you gotta think of something else soon because some major press is about to hit in early October...
9-20-2007 @ 10:32AM
John Stevenson said...
Tim Sykes is having negative book reviews removed at Amazon; and is getting a little more emotionally unstable, like insulting any reader of the book who is unimpressed...kind of weird...
The 250K "loan" from his hedge fund to nearly bankrupt Cygnus E-Transactions (CYGT.PK) and additional purchase of shares was amazingly ignorant and possibly illegal. I feel sorry for Sykes investors who lost large amounts of money....
9-20-2007 @ 1:57PM
Randy Burchell said...
I read an advance copy of this book and Tim Sykes is a total fraud and a SPAMMER. I would never pay $20 for this book. It's basically his failed life story. And what kind of hedge fund specializes in penny stocks and microcaps? Totally disingenious author and marketing.
9-20-2007 @ 9:09PM
Reaver said...
Sorry dude, but you are only deleting negative reviews....I don't see you with your scales of justice deleting positve reviews of shills who obviously haven't read the book...
hmmm...
I'm just sayin....
That's ol snake oil Sykes for ya though.
9-21-2007 @ 10:40PM
Tim Sykes said...
Hahaha I can't believe these idiots care so much about me and my little book. If you guys stop posting FACTUALLY INACCURATE reviews, I won't have to delete them. But I've got better things to do now so just keep posting them, somehow I feel like my positive reviews will overwhelm you eventually...
9-22-2007 @ 11:10AM
M. Nunn said...
MORE SYKES LIES(Amazon Quote):"Yes, my hedge fund is off its highs, .....I am glad to say that the bleeding has recently stopped."
WRONG!: Sykes/Cilantro continues to lose investors money throughout summer 2007; DOWN again during Aug2007 and Jul2007;
Sykes/Cilantro Fund bleeding has NOT stopped!
Down over -37% since Jan2006; Sykes don't lie! Your poor Fund investors continue to lose large amounts of money; more than just " fund off it's highs"...
9-22-2007 @ 9:22PM
Steve B. said...
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....
9-27-2007 @ 2:36PM
A.J. said...
Tim,
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)
9-28-2007 @ 10:29AM
Jake Stein said...
Sykes said: "..It'll be a lot easier for me to teach 1,000 people to make $10,000 ..."
Uh oh....Here is a warning about Sykes/BullShit Express:
1) He closes the failed Cilantro Hedge Fund because it had an audited track record which documented his failures, then
2) Now, with the Fund closed he can BullShit his "trades" to newbies and suckers. For example, Sykes will name a bunch of possible trades and then take credit for anything that works.
3) Sykes will not have any audited track record; so all aboard the BullShit Sykes express!
9-28-2007 @ 12:26PM
O. Coach said...
I have to make a few points here Timmy from someone with experience, not more than most here but enough to make my comments:
1. The SEC does not shackle or censor the industry. Mary and John Smith, the average retail investor out there does not have the discretionary dollars or financial know how to invest in hedge funds. The main reason for many rules and restrictions in the laws is that due to the risky and non-public nature of hedge funds, the average investor should be prevented from putting their meager investment dollars in there just to see it get blown up. The rich are either very sophisticated or have the money to afford fancy financial managers to due the due diligence for them if they wish to put money into hedge funds. This is not the class the SEC needs to protect in their point of view.
So to say people have been kept out of the knowledge loop by the SEC is naive of the actual laws out there and their original intents. You are not shackled, the rules are clear in how and who you can talk too. Ms. Mary making $40k a year teaching English does not need to be thrown into the hedge fund industry.
2. Penny stocks are the riskiest investments out there. Anyone with true knowlege of ivnesting knows this already and you are not adding anything new. I think you admit not knowing anything about this sector when you got in. So in reality you needed to educate yourself. The average American might find it anecdotal to learn about penny stocks but they should not even touch them. A book is not needed to tell them this fact of life because most of them knew nothing about penny stocks before hand anyway. The worst thing in the world you can do is pretend to teach people how to actually make money in penny stocks and encourage them to go into this field. That is financially irresponsible.
3. You are closing your fund for one reason only, to stop trading (it was mostly your money anyway) and focus on the new career you have started. The SEC is not handcuffing you in any way since I see advisors all day on CNBC talking their book with full disclosure. People here truly do not hate you they are insulted by the double talk as though we are the naive group of people you are selling the book to.
4. You are not offering any amazing expose on the hedge fund industry. The rules and restrictions on hedge funds and advertising is easily found on Google. They all come from the SEC laws on the books since the 1930s. You are more focsued on the manipulation that occurs in the penny stock sector and again, the informed already know that a $0.40 stock with 5000 shares traded is easily manipulated.
My point is that you traded from your living room and started a hedge fund with your own money and a few investors. You actually do not have true insight into the hedge fund world because you were never in it. Jim Cramer was in the hedge fund world, Long-term Capital Management, the guys on Wall Street with $1 billion in assets are swimming head deep in the real world of raising capital, managing assets, leverage and returns. So it is a little misleading. I think you would have done better marketing talking about the penny stock markets and focusing on that. Your complaints on the SEC and the hedge fund industry is like a college Division 2 ball player claiming to critique the Major Leagues, from the outside.
So stop for a second and realize that behind these names are people with long industry experience and trading backgrounds who have a better sense of what the industry is and can see that you are waving your hands to get the attention but lack the substance. And no I do not need to read the book because you have already told me all I need to see. Trading your own account pretty much and in penny stocks and with assets of less than $2 million is not the hedge fund industry. I know many retail acconts which are much bigger and more active in alternative investments but so do a lot of people here.
Your marketing approach is not for the industry it is for those ignorant of the industry who dream of trading so they live through your story but for myself, I live this everyday and understand the SEC laws and industry regulations.
So I say this without trashing since I support you in your book as writing a book is a wonderful experience. What I take issue is the claims that you and the book and what you are offering are something they are not. Fine for the uninformed public since they do not know any better but for most of us familair with penny stocks, hedge funds and the SEC, it is more of the same and what Google can reveal. If you wish I can put a detailed google collection of info right here.
10-01-2007 @ 5:40PM
Jon Freedman said...
I did not enjoy reading Sykes horrible book. It is overhyped and embarrassingly bad! There have been so many other blowouts, and unlike Sykes many are actually interesting like Hunt brothers, LTCM, Livermore etc.
What's so special about Sykes BLOWOUT? NOTHING!!He must not have read FOOLED BY RANDOMNESS, or knows what BLACK SWAN Means..
Vic's implosion, LTCM implosion were a treat to watch. Sykes is just a kid nobody cares about. Even Jesse Livermore Lost it all 3 times or maybe more..
There is nothing special about Sykes story and his Hedge Fund failure! Moreover, Sykes book is not a story of someone WHO LOST IT ALL and had GUTS TO carry on and make it all back again.
ONCE Sykes lost his money, he just changed professions.haha...
What a FIGHTER!?....haha... Book is not worth $20 !!
10-01-2007 @ 7:53PM
friend of tim said...
I do not understand why people are comfortable commenting on a book they did not read. I am shocked people lie about reading the book and then post reviews. The most amusing part is then they claim it is a conspiracy and it is unfair when the fraudelent reviews are taken off the blogs. I would think they have better things to do with their time. Please take the time to read the book or at least look ip what Mark Twain said about critics.
10-02-2007 @ 9:44AM
Jake Bernstein said...
Next wave of SPAM will be Timmay Sykes selling cheesy DVD on trading penny stocks (..maybe also an infomercial to "teach" and pimp DVD...),
More SPAM from Sykes: a failed american hedge fund manager!