Martin Shkreli on Starting Hedge Fund at 23, Fund Collapsing After Bad Trade (Part 3)

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Part 4: https://youtu.be/foKqsf31360
Part 2: https://youtu.be/WFeEgXXV7Ak
Part 1: https://youtu.be/pun5ZxRHa9U
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Martin Shkreli sat down for a candid discussion about his early venture into the hedge fund industry. At just 23, Shkreli launched Elliott Capital Management, a decision he now describes as a “big mistake.” Despite starting multiple funds after working at a prominent hedge fund and mid-sized Cramer investment firm, Shkreli’s hedge fund journey was fraught with challenges.

In 2007, a significant downturn occurred when Lehman Brothers sued Shkreli over a put option transaction gone wrong. Although the case settled with Shkreli paying a fraction of the demanded $2.3 million, Lehman Brothers’ subsequent bankruptcy rendered the payment somewhat moot. Reflecting on the experience, Shkreli admitted the trade was regretful but highlighted that his investments outside the fund in pharmaceuticals were substantially larger.

Shkreli shared that his true financial success began in his late 20s when his drug company went public. He emphasized that while trading required extreme discipline, his deep knowledge of the pharmaceutical industry eventually led to more substantial gains through business ventures rather than trading.