That's One Expensive Headache

Early in my Wall Street career, as a young, up-and-coming trader, I experienced one of the most memorable days of my career. As a trader and market-maker, my most uplifting days were always associated with my most profitable days, which is always the case for successful traders. Inefficient markets, anomalies, and asymmetric payoffs provided me the opportunity to consistently generate alpha with a win-loss ratio greater than 90% despite volatility.

There is one day in my career I have never forgotten. With a splitting headache and a low-grade fever, I squared up my book after another day of solid profits. Under the weather but satisfied, I walked into my boss’s office, a fellow named Greg, to report another day of winnings and let him know I was going to head home for the day. Greg was on the phone, feet up on the desk, relaxed and smug as usual, as nothing seemed to phase Greg, the quintessential Wall Street hot-shot boss, suspenders and all. I gave Greg the quick update and said, “I’m calling it a day.” As I turned to leave, I overheard him chuckle into the receiver to the person he was speaking with, as he said just loud enough for me to hear, “There goes another Wally Pipp.”

I paused at the door, curious. 

“Who’s Wally Pipp?” Greg hung up the phone and grinned as he said, “You don’t know who Wally Pipp is?” I replied that I did not. He asked me to sit down so that he could share the Wally Pipp story. “Wally Pipp was an all-star first baseman for the New York Yankees. One day, he wasn’t feeling great; he had a headache, just like you, and asked the manager of the Yankees for the day off. His manager granted his wish and put in a rookie named Lou Gehrig to play first base. Gehrig went on to become the greatest first baseman in Yankees history, never missing a game and setting the record for playing 2,130 consecutive games. That earned Gehrig the nickname ‘The Iron Horse’ and a spot in the Hall of Fame. As for Wally Pipp, he never started another professional baseball game for the rest of his career.”

I laughed, thanked Greg for sharing the story with me, and walked back to my desk, the last guy to leave. Working hard, with relentless dedication and the pursuit of excellence, is innate. Serving our clients, leading great teams, focusing on the complexities of the credit markets, and driving alpha through insights day in and day out is a fun game, one that is as rewarding as it is challenging.

Moral of the story: In markets or baseball, there’s no substitute for hard work and showing up every single day. Opportunities favor the relentless..