Clairvoyance can be all fun and games but lest we run wild with our powers (“I knew you were going to say that!”), it’s important to remember that it often comes at a cost. During last week’s fireside chat per Episode 4, I wondered aloud, “How the producers are going to keep you and I hooked for the rest of the season after shooting their wad on this one, I have no idea but we’ll cross that bridge when we get to it.” Friends—that bridge is upon us. Episode five—what can I say? It was okay; but it doesn’t hold a candle to episode four. Godfather I versus III, if you catch my drift. (Or Douglas as Gordon Gekko versus Douglas as Steve Tobias, if you’re more comfortable with that analogy and I have a hunch many of you are). Watched E4 on Sunday, as usual, and have been sitting on this run-down ever since. Do it? Don’t do it? Five little words—one ghastly dilemma. I put off dealing with it for a while—as people who embrace the ‘ignore the problem and it’ll go away’ tactic are wont to do—but something from deep inside has been saying “Do episode 5, Bess. Do it now,” since I woke up this morning (but conceivably that could be last night’s bad Chinese talking). Despite its suspicious provenance, despite—nay, because of—the questionable spring rolls, I've decided, "I WILL do this, and now." Also, because Tim Sykes says, “I feel it’s my duty to be the Godfather of throwing parties.”
Timmy is not having a good day. He’s only made “20 bucks” this morning, a paltry sum compared to his best trading day ever, which clocked in at $350,000. Sykesie’s not too upset about his lone Jackson, though, because tonight, he’s “throwing a big ass roof top party. A hundred people are invited. Hopefully it’ll turn into a Girls Gone Wild Video.” Let’s all cross our fingers for that.
Ted Wesiberg’s been a trader for 38 years. He loves the tickertape, because it’s “the same in California, New York and Hong Kong. You might not like the price but you can see the price. Transparency is key.”
Did you know that in Russia, it is considered good luck if you surround yourself with money? I, a quarter Russian, did not know this (for shame), but it would explain why Alex Gerchik’s car is littered with dollar bills. Gerchik tells the story about how when he came to the U.S., he was a cab driver before coming a trader, which I guess would also explain why the guy (or gal) who edits WSW insists on all of AG’s b-roll being of him driving his car. You’re starting to see what I mean about Godfather I vs. III, are you not?
Sandra Navidi is visiting a financial astrologer, Henry, who’s been in the biz since 1967 (he knew about the ’87 crash in ’86, he says). This bit had to have been at the suggestion of a producer, because the look of disgust on Sandy’s face when Hank tells her “astrology is a science” fails to convey the message, “I came here out of my own volition.” (Inability to stifle disdain for others = another reason we love Sandy N.).
Andrew Barber, during “Street Talk,” explains the phrase “dead cat bounce.” (DCB “is a term used in market economics to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, with the connotation that the rise does not indicate improving circumstances.” That explanation was by Wikipedia, not Barber, but he puts together some nice words on the subject, too, though I can’t recall them at this time. You’re an okay guy, AB).
Tim’s still down. Sisinister music plays. In a parallel universe, Ruskie Gerchik tells us he hasn’t been down since 1999. If things aren’t going well on a particular day, he “stops trading for thirty minutes and goes to Dunkin Donuts.
Sandy asks Henry if he thinks she’s a Taurus. “I’d have to hold your hands and do some things we can’t do on camera to on camera to see if you’re a Taurus,” he counters. He then adds, “I can tell sex—maybe not in the West Village…do you get the joke? You should be laughing more…”
Here’s a good one to be written on the bathroom wall of your favorite watering holes: “The stars IMpel, they do not COMpel.”
At 2:52, Tim is down $3600 on the day and tells his stock, “you are a bitch.”
Sykesie-boy proceeds to go through a huge box to find a shirt to wear (his mom “didn’t come this week,” is why this is happening) for a meeting with a “billion dollar babe.”
At Patroon, we find that that BB is Sandy! Coincidink!
Sandy: What do you do on days when you don’t trade? Tim: I read. I can’t read fiction. Sandy: Me too, I’m the same way. Tim: You should see my library, I’m on 46th and Second.:::exchange of business cards:::
Tim thinks the meeting went well, and that he might have gotten a date out of it.
Party on the roof top!
Overheard on said rooftop:
“There are 5 girls in the bathroom? That’s kind of cool.” “Take off your shirt!” “I’m already making more money than anyone here—well, I mean with the exception of Tim” “I’m the only one of my friends making money; I feel it’s my duty to be the godfather of throwing parties.” “99% of the best stories I have are with Tim.” “I was cramped in the room with funny little Jewish kid” “I hate to use the word 'boy wonder,' because he’s not really a boy.”
“The stars IMpel, they do not COMpel.”-- write it down.






Posted by joe mama , Nov 30, 2006 6:14PM
e5 is like gf3, but i hear e6 is gonna rock with as sandy interviews a billionaire
Posted by beanspants1 , Nov 30, 2006 11:46PM
I feel kinda sorry for sandy.
first she has to go to the financial psychic, and then to see that roofparty kid, who seems alright, but made some money way back in school, and is still fighting for loose change. --not quite ready to be a prime time fund manager.
she tries to be all business and she's date fodder and wasting her (supposed) business experience on trivialities.
Posted by Hedge , Dec 01, 2006 12:38AM
Tim Sykes keeps proving me wrong. Just when I think he can't possibly be more pathetic, he comes right out of nowhere with something else. Akward and spolied Jewish mama's boy who thinks he is a player. I will be waiting to see him at a 2nd tier I-Bank as a TA in about 2 years. Coffee, 2 scoops of sugar with cream. And make it fast this time Tim, you have to earn the 40k we pay you somehow." HAHAHA, what a joke.
--
Hedge
Posted by The Corner , Dec 01, 2006 9:19AM
Haha nice Sykes blasting there. Very humorous. The 5-year Wall Street Warriors reunion episode finds Tim standing behind a 31 year old Ivy MBA who didn't quite fit at Lehman or Morgan so he ended up at Keefe Bruyette or Cowen and Co.
Posted by Tim "Wannabe" Sykes , Dec 01, 2006 9:31AM
Nice analysis Hedge, although I think you forget soemthing. He wouldn't even make it into the sell-side or any other buy-side firm. After embarrasing himself on this show and proving to everyone he is an idiot kid, he would never make it. So it comes down to 2 options. One, stay with his own firm (the odds of it staying in existence are slim to non given his returns) or two, leave Wall St. altogether, an better idea for him in my opinion. Until the next pathetic Tim Sykes performance I bid everyone a fond farewell.
Posted by The Corner , Dec 01, 2006 10:36AM
Wait I thought he actually had good returns? Besides, the guy is his firm's only employee, its not like he has staffers demanding ridiculous buy-side pay. He wouldn't really have to make that much money to stay in business.
Posted by Texas Energy , Dec 01, 2006 11:06AM
Lot's of trash-talking here. Can any of you all back that up with stories of how you are so much cooler/classier/accomplished than Timmy?
Posted by mike hedge , Dec 01, 2006 11:18AM
You Sykes bashers are pretty pathetic; the kid can do whatever he wants on tv because unlike most of Wall St.; his business is not solely about perception, but trading and returns. Even after being down this year, he's still the #1 short fund manager over the past 3 years now that Rocker has retired
Sure, he might not get many investors with his antics, but he's pretty damn funny. The kid is still a millionaire so I doubt he'll be working at IBank any time soon
Posted by Bitch, Moan, and Whine , Dec 01, 2006 11:31AM
Tim is an ambitious dude with a gunslinger mentality. That's admirable. But whether naiive or ignorant or both, he's not coming off especially well on the show. He's almost a SNL parody of a "young hedge fund manager."
But the facts are that Tim 1) runs less than $1.5mm and as most people are aware, it's not difficult to post great numbers with small AUM; 2) he considers himself a rockstar wonder-boy when his glory days are long past (more luck than skill?); 3) he markets himself as a short-biased, micro and small cap manager when it's quite obvious he's nothing more than a short-term momentum trader; 4) he's down -16.6% YTD heading into November (down close to -24% since June); and 5) he seems to enjoy the "celebrity" of being a HF manager more than a propensity to work diligently for returns.
Posted by ya momma , Dec 01, 2006 12:52PM
BMW you are on point every time.
I feel like Warren Buffet when I look at Tim Sykes. He is too funny. He celebrates a $20.00 win and in another shot he loses $3K.
I am starting to wonder about Sandy. How does she get stuck going to see this weirdo (no, not Tim) and then she has a lunch date with the Sykester. Did she give Tim a positive vibe? If so, why?
Bessie, you are slipping posting this on THURSDAY. I've been waiting all week for your review of the latest Episode. Please post sooner.
Posted by Anonymous , Dec 01, 2006 12:58PM
Honestly, I don't care what he did when he was in college. I agree with BMW, it looks like more luck than anything. A taleneted PM generates consistent outsized returns and not 2 good years followed by years with extreme underperformance. If you understand basics, most people can produce returns that are similar to Sykes, or as I like to say, the Pretender. $1.5mm in capital is next to nothing but it almost has to be. His supposed strategy of shorting micro and small cap names isn't scalable at all. If you wanted to run real money you couldn't do it because you wouldn't be able to get the borrow on many of the names. So even if Sykes was knocking the cover off the ball, which he isn't, he has a limit to how high he can go. What does all this equal, Who cares about him. He doesn't move markets, he doesn't produce returms for his small investor base, he doesn't cut it. Keep pretending though buddy.
Posted by Jason C , Dec 01, 2006 10:31PM
can i get a rundown on how succesfull everyone on this post is. Im going to go ahead and assume that anyone on here, under 30 is not making 300K+/year here, regardless of if he makes it sounds like he makes more. The reason he is down this year is because of one holding that is illiquid, CYGY.PK. If any research is done by any of you then you would probably realize that the company is worth a little more that 8.5Million. If this stock was at fair value comparatively to other micro cap start up growth companies then it would be worth at least 75Million. do the math on such a small fund and you will see the possibilities and the reason that he is actually content with his positioning in the market even though he is down right now.
Posted by Bitch, Whine, and Moan , Dec 02, 2006 12:19AM
It's not so much player hating because Tim is not a player. I think people are turned off by his antics because he "acts" like a BSD. He's an ambitious fund manager (dime a dozen) who runs a tiny amount of money and is having a very bad year. Since his fund contains a majority of his own net worth and not much money from anyone else, he probably won't "blow up" ... even with continued poor performance.
Illiquid or not, down -24% since June is inexcusable for a fund that should be nimble and flexible. Where's the risk management discipline? I mean, if he worked for a larger fund and ran a carve-out, he'd be cast into the streets.
But despite it all, I give half-props to Tim. It takes balls to forge an unorthodox route to asset management and start-up his own firm at such a young age. But a little humility would help.
Posted by , Dec 02, 2006 2:16AM
christ the poeple here are pitiful and jealous. of course he wants to party and be a "celebrity", he made more by the time he graduates college than anyone here could dream of.
i applaud the guy for having a life instead of slaving 100 hours a week as a replaceable peon on wall street with no life (aka being an ibanker/hf analyst)
Posted by Ya momma , Dec 02, 2006 3:15AM
Sounds like Jason C is Tim Sykes in disguise! Welcome.
Others have posted that his "hedge fund" has 1.5 in assets. Let's say it's 2 just to make the math easy.
He recently chopped off his fee from 30 to 20%. Last year he was down, so he collected the management fee only what 2% (is this correct?), so that means $40 grand. That seems a bit off from $300.
Maybe my math is wrong, can someone set me straight.
And Tim, oops, I mean Jason or JC if you prefer, don't take it so personally.
That was a nice blonde Tim went out with. I'll give him props there. I thought it was funny when he told her "he isn't the Bit**." Too bad she didn't tell him, "Honey, everybody is somebody's bit**. You just don't know it yet."
IT's TRUE! I read it in The Art of War Szun Tzu. Gecko read it to me.
What is CYGY.PK? I couldn't find it anywhere. I guess you're right, it's illiquid.
Posted by Jason C , Dec 02, 2006 12:15PM
I'm not Tim, just a friend of his. he's been up 20%+ the past few years before when his fund assets were 2-3 million so do the math, it is a couple hundred grand a year.
I meant to type CYGT.PK, Cygnus eTransactions; they are a micro-Ticketmaster and have just signed up some big clients like AOL, Hershey, Six Flags. Read their PR, a profitable Pink Sheet company at 20 cents; the upside is huge
Posted by Goldface , Dec 04, 2006 10:49AM
If Tim is loaded with CYGT.PK, a company with a $5MM cap, it can't be the reason he's so far down on $1.5MM capital, unless he owns most of the company. (Because he also seems to have intraday buying power, which means that there's something else smelly in his trading.)
And if his big ideas are companies like CYGT, then he has no business running the billion he's been searching for.
Even if he's a good trader, Tim is a pathetic loser with serious Mommy issues. He's a joke!
Posted by Anonymous , Dec 04, 2006 12:20PM
Look, plain and simple ... Tim is a day-trader. He's even endowed the "The Timothy Sykes Daytrading Award for the Talented" at Tulane. He had a great streak turning his 5 figures into 7 figures but that's IT. There's a huge difference managing other people's money, let alone $100mm compared to $1.5mm.
How much money can he possibly make when the bulk of the capital he's running is his own? Can he charge 2/20 on his own money?
Posted by curmudgeonly troll , Dec 05, 2006 4:31PM
Yeah, Tim's a douchebag, but he might grow out of it. You can learn humility but you can't grow balls if you don't have'em to start with.
Hope that's not Jason C, the Mark Cuban wannabe without the talent...
Posted by Anonymous , Dec 06, 2006 1:10PM
I know who Jason C is, Jason Crowley. You're just as pathetic as Sykes is. Why don't you two go suck each other off and praise yourselves a little more. Loser.
Posted by richgirl , Jan 20, 2007 12:42PM
Tim Sykes seems to be a cute down to earth kid.
I have only seen the show once.
Posted by , Jan 22, 2007 11:47AM
Tim rules you bitter pussies!
Posted by me , Feb 09, 2007 2:19PM
how would you get in touch with Tim if u wanted to invest in his start-up hedge????
Posted by me , Feb 09, 2007 2:20PM
how would you get in touch with Tim if u wanted to invest in his start-up hedge????
Posted by DearLord , Mar 04, 2007 7:28PM
I've been a trader(fixed income) and now work at a hedge fund and I cringe at this.
http://realhoboken.com/columns/2007_columns/greed.htm
Cringe. It just smells of BS.
Posted by Busta , Apr 23, 2007 2:34PM
Better to do what he does than join the rat race workin 80+ hours a week to make a few hundred. Cant buy time.
Someone email me at dbxfly@msn.com
Im selling Seth Klarmanns Margin of Safety...
Posted by Kaplan Accounting , Aug 15, 2007 7:12AM
We all know Tim Sykes is a fraud and is losing a lot of money in his "hedge fund" throughout 2006-07, so maybe he will hire Zachary Michaelson to refine his trading strategies.
Sykes and Michaelson deserve each other!