Leading up to 2008, Porsche wasn’t really a car company and its then CEO, Wendelin Wiedeking, was getting rich off a profit incentive that many hedge fund managers live and die from. As the financial crisis approached, Porsche reported earnings of $11.5 billion, which observers noted was an odd achievement. Putting this in mathematical and historical perspective, in fact, it was shocking. Prosche’s profit from per car sold With that type of profit, Prosche made an amazing $136,000 gross profit per car sold. After selling a record 98,652 cars during the year, this was a stunning profit margin on cars that…
Porsche Profits Once Driven By Hedge Fund Trading, Not Cars
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.