Early Life and Education
Bruce Stanley Kovner was born in Brooklyn, New York, in 1945, to Jewish parents. His family later moved to Los Angeles. A high achiever, Kovner excelled in academics, becoming student-body president of Van Nuys High School. He went on to Harvard University, studying political economy and government. Though he did not complete his Ph.D., his academic pursuits laid the groundwork for his later career.
Rise to Success
Kovner's financial career began in 1977 when he borrowed $3,000 on a credit card to trade soybean futures. He learned risk management through this experience. He joined Commodities Corporation, where he honed his skills. In 1983, he founded Caxton Associates, which grew into a leading global macro hedge fund. Caxton Associates managed over $14 billion at its peak and delivered an average annual return of over 21%.
Key Business Strategies
Kovner is known for his disciplined trading philosophy. He emphasized risk management and the importance of limiting risk per trade. His approach involved careful analysis of macroeconomic trends and integrating geopolitical analysis with technical strategies. Kovner's strategy included a 24/7 global trading operation and earned returns over 30% in some years. He has said that “Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.”
Philanthropy
Through The Kovner Foundation, he has supported causes related to the arts, education, private enterprise, and democratic principles. Kovner has made significant donations to The Juilliard School, where he has been chairman of the board since 2001. In 2013, he and his wife endowed the Kovner Fellowship Program with a $60 million gift. He also supports Lincoln Center, the Metropolitan Opera, and charter schools. Overall, he has donated over $500 million to various causes.
