← The field guidesMarkets / A study in conviction

21 cases. Two centuries. No crystal ball.

Legendary
trades.

The thesis.
The nerve. The numbers.

Before they became market folklore, they were uncertain decisions. Explore the bets, the people who made them, and the cost of waiting to be right.

Start with the stories
1815 — 2020Macro · Equity · Credit · Commodities · QuantRead the source notes ↗
Behind the headline

A great trade starts
with a different question.

How long can a government defend its currency? What is actually inside that mortgage bond? What happens when everybody’s risk model tells them to sell at once?

The profit is the part we remember. The interesting work happens before it: finding a contradiction, choosing how to express it, and surviving the period when the market disagrees.

This collection brings the stories and their models together. Read for the decision. Stay for the details.

Three places to beginExplore all 21 ↗
The long view19 modelled cases · 1929–2020

Different decades.
Different kinds of conviction.

Each point is a case, positioned by year and the model’s estimated dollar profit. Explore a point to read the story. The vertical scale is logarithmic so smaller estimates remain visible.

Source estimates, not a performance ranking. Waterloo and Medallion are excluded; points sharing a year may be slightly offset for legibility. Nominal dollars across eras are not purchasing-power equivalents.

The complete collection21 of 21 cases

Find your next rabbit hole.

Dollar figures are source estimates in nominal USD, except Ackman’s proceeds-to-profit correction. They are not audited or directly comparable. Open a case for its qualifications.

Historical cases and workbook model estimates
YearInvestor / the tradeMarketModel profitModel duration
1815Nathan RothschildLong British Consols (Waterloo)Disputed historyFixed IncomeNot comparableSee source note
1929Jesse LivermoreShort 1929 Market CrashEquity Short$100m90 days
1965John TempletonLong Japanese EquitiesEquity Long$500m7,300 days
1987Paul Tudor JonesShort Black MondayEquity Short$100m14 days
1987Andy KriegerShort New Zealand DollarMacro$300m14 days
1988*Renaissance TechnologiesMedallion Fund (Systematic)Strategy illustrationQuantitativeNot comparableSee source note
1990Stanley DruckenmillerLong Deutsche Mark (Reunification)Macro$600m180 days
1990Louis BaconGulf War Oil Long / Equity ShortMacro$300m90 days
1992George SorosShort British Pound (Black Wednesday)Macro$1.8bn30 days
1997George SorosShort Thai Baht (Asian Crisis)Macro$750m60 days
2001Jim ChanosShort EnronEquity Short$500m365 days
2004Jim RogersLong Commodities Super-CycleCommodity Long$1.5bn2,555 days
2007John PaulsonShort Subprime MortgagesCredit$15bn730 days
2007Michael BurryShort Subprime (The Big Short)Credit$700m730 days
2008Andrew HallLong Oil Super-SpikeCommodity Long$1bn1,825 days
2008Kyle BassShort Subprime / Hayman CapitalCredit$590m730 days
2009David TepperLong Bank Stocks (March 2009)Equity Long$7bn270 days
2011Mark HartShort European Sovereign DebtCredit$400m365 days
2013George SorosShort Japanese Yen (Abenomics)Macro$1.4bn120 days
2020Bill AckmanCOVID CDS HedgeSource correctionCredit$2.57bn21 days
2020Chris RokosBond Positioning (COVID)Macro$1bn90 days

* Medallion’s 1988 year is a source timeline marker, not the period of the illustrative profit model. The Waterloo case is retained as disputed history.

What travels beyond the trade

The part worth keeping.

01

An edge needs a mechanism.

A weak currency, a fragile mortgage or an overpriced business is only the beginning. What instrument translates that insight into a payoff?

02

Being early has a price.

Premiums, financing, margin and impatient investors all run on a clock. The ability to wait belongs inside the thesis.

03

The denominator changes the story.

Profit divided by premium tells a different story from profit divided by notional exposure. A fund’s annual return is a third number.

04

Survival rarely makes the headline.

This is a collection of selected winners. It cannot tell you the odds of winning, the size of unseen losses or whether an approach is repeatable.

Sources & interpretation

Keep the story.
Check the numbers.

The starting point

Based on the 21-case Legendary Trades Models workbook supplied for this collection: Master Comparison, Trade P&L Models, Category Analysis, Common Patterns and Timeline. The source contains estimates without trade-level documentary citations. The original file remains private.

Each case identifies its source row. Selected primary sources support historical context; they do not verify every position, profit, duration or fund-return estimate. Editorial lessons are interpretations.

The limits of the comparison

Positions may mean notional exposure, cash invested or premium paid. Profits may cover different periods. We therefore avoid aggregate profit totals, average returns and a “best trader” ranking.

Ackman’s proceeds are adjusted for the stated premium and commissions. Waterloo is marked disputed. Medallion is a strategy illustration. Models omit many real-world costs and are educational, not investment recommendations.