What I really like about it, and one of the chief reasons it has been so successful has been because of the underlying philosophy the fund is built on.
That philosophy is trends.
It's called a macro or trend fund, which means it makes investment in any category or sector where the trend is moving in a fairly predictable and significant way.
This of course means it doesn't matter whether things are moving up or down; the key is that they are moving, and that's what the Caxton Associates hedge fund run by Bruce Kovner looks for.
Because the fund looks for large movements, there is a major investment in commodities, which are notorious for huge swings over periods of time.
Anyway, it's a typical story of someone starting with very little and becoming one of the wealthiest men in the world. Kovner started by using $3,000 from a Mastercard and multiplied that to about $40,000, before it dropped down to $23,000.
That was one of Kovner's best lessons he could have learned before investing huge sums of money.
The reason he didn't cash in at around $40,000, is he didn't put a stop on, and so the soy beans he invested in kept plummeting before he finally salvaged the $23,000.
Still not bad, but it was a valuable lesson that has been profitable for him and his investors through the years.
Over a 10-year period, the fund returned an astonishing average of 87 percent growth annually. An investment of only $1,000 ended up at around $1 million during that decade.
Another thing that makes Bruce Kovner and the fund interesting, is the low key lifestyle Kovner prefers, where very few people know who he is, or ever heard of him.
He prefers it that way, as he quietly goes about making fortunes for those that entrust him and Caxton Associates with their wealth management.
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