253 · Lessons from Financial History and False Expectations in the Markets w/ Patrick Boyle

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Patrick is a finance professor, author, quant hedge fund manager and a connoisseur of financial history. As a young investor in Utility stocks, Patrick’s hunger to learn and apply the lessons of financial history helped him to maintain composure during the frenzied bubble market in the late 90’s and avoid most of the losses his colleagues suffered during the dot com blowup. 

Patrick’s studiousness, and growing aptitude for finding opportunities, resulted in him making valuable connections with mentors and business partners. His desire to understand history by analyzing data led to building quantitative trading models and eventually launching a quant hedge fund Palomar Capital. 

This episode is packed with so much rich information, wisdom, and humor. 


Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.

Topics & Timestamps:

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  • 0:00 Background
  • 4:00 How Patrick picked his first stocks
  • 5:33 How the internet and dot com boom influenced Patrick
  • 8:46 Was the dot com boom much different from other bull markets?
  • 14:02 Did overvaluations in dot com stocks tempt Patrick to sell short?
  • 18:18 Early interest in quantitative trading
  • 29:40 Patrick’s biggest loss and lessons learned
  • 34:09 How has the limitations of quant trading varied over the years
  • 36:44 Need to frequently come up with new strategies?
  • 40:40 Easier or more difficult today than the early years?
  • 43:50 The 2010 Flash Crash
  • 48:10 Why only 22% of Hedge funds are purely quantitative
  • 51:43 How was 2022 for Patrick. Why he dislikes shorting
  • 59:42 Managing risk and false expectations
  • 1:04:30 How to protect ourselves from scams
  • 1:10:50 Do older strategies become effective again?
  • 1:13:49 Patrick’s biggest struggles in trading
  • 1:16:20 How to contact Patrick

Patrick Boyle

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