The Tenth Man

In Search Of Divergence And Anomalies In Capital Markets

About The Tenth Man

In the movie World War Z, one of the characters described something called “the Tenth Man Rule.”

To avoid unwanted surprises like The Yom Kippur war with Egypt and Syria in 1973, Israel had instituted a policy known as “the tenth man.”

When nine people agree on something, it’s the tenth man’s responsibility to disagree no matter how improbable the ideaWhen the email came through that zombies were on their way, the tenth man proposed that they prepare for a zombie invasion, no matter how ridiculous the idea seemed. While this is obviously an extreme example, there’s an important lesson there that you can use to avoid fooling yourself. If the tenth man hadn’t spoken, Israel would have been overrun by zombies like the rest of the world. The tenth man forced Israel to consider an alternative view point, something we humans usually resist.

I intend to look at capital markets from the perspective of The Tenth Man. I believe that there are opportunities and risks associated with market divergence and anomalies. Using quantitative, fundamental and technical analysis, I intend to explore (as well as exploit) the divergence and anomalies in security prices, inter-markets and global macro.

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