Simon Cawkwell's Journey: From Trading to Writing and Speaking
Biography of Simon Cawkwell's
Simon Allerton Cawkwell, born in October 1946, is a British
figure known for his work in the stock market. He gained prominence as a
commentator, share trader, and author. His notable contributions include
writing a thrice-weekly diary for T1ps.com, a platform that no longer exists.
In this diary, he publicly highlighted companies he believed would experience a
decline in their share prices and personally wagered on these predictions.
Presently, he continues his work as an author, public speaker, and podcaster,
operating under the alias "Evil Knievil." His most famous work,
"Evil Diaries," is hosted on the Master Investor website.
Family Legacy and Education
Simon Cawkwell, the son of George Cawkwell, a renowned
historian and former Vice Master of University College, Oxford, has an
illustrious background. He received his education at the prestigious Dragon
School in Oxford, followed by Rugby School.
Early Career Beginnings
His professional journey began as an Articled clerk at the
esteemed accountancy firm Coopers & Lybrand. Following this, he ventured to
Zambia, where he worked as a mines cost flow and taxation forecast accountant.
In 1973, he returned to the United Kingdom to continue his career.
Trading and exposing fraud
Cawkwell was involved in exposing the fraud committed by
Robert Maxwell specifically Maxwell Communication Corporation.
Cawkwell did his first share trade in 1967 at the age of 21
and his first short position taken was MFI Group in 1973, it collapsed from
150p to 10p, he also made £1 million on short-selling shares in Northern Rock,
Polly Peck and Amber Day.
In the early 2000s, he made the correct prediction on the
prices of gold stocks. Cawkwell was listed amongst the World's top ten most
famous traders of all time in 2019 by IG Group.
Short Selling Regulations
His short selling activities faced restrictions due to the
Short-Selling Prohibition disclosure rules implemented in 2008. These rules required
notification if the short position covered more than 0.25% of a company's
shares, and they expired in May 2020. Additionally, new thresholds for
short-selling notifications were announced in January 2021.
Legal Dispute with Boris Fedorov
In March 2001, Simon Cawkwell filed a $1 million lawsuit
against Boris Fedorov, a former Russian Deputy Prime Minister, over a dispute
related to the control of Gazprom, a Russian oil and gas company. Cawkwell
served as a director of Tranquillo, a significant shareholder in Gazprom.
Entrepreneurial Ventures
Cawkwell established his own accountancy firm in Jermyn
Street, Mayfair, and co-founded Company Communications Centre in 1978 with two
former directors of Oyez Group. Additionally, he held a directorship position
at Virgin Atlantic. He chaired WineBank, but his efforts to salvage the wine
trading group were unsuccessful.
Resignation from Kryso Resources
Following a violation of the rules of the AIM stock exchange
by purchasing shares during a prohibited period, Cawkwell was compelled to step
down as a company director of Kryso Resources (later renamed China Nonferrous
Gold).
Cawkwell previously held directorship positions at
Greasemeter Limited, Fisher Harrison Limited, Incase Solutions Limited, Custom
Products Limited, and Kryso Resources Limited.
Simon Cawkwell: From Trading to Writing
Simon Cawkwell, also known as Evil Knievil, is a well-known British figure in the stock market. He gained fame for his writings on T1ps.com, where he shared his insights on stock trading, particularly focusing on identifying companies he believed would see a decline in their share prices. Additionally, he personally invested in these predicted falls, making him a notable figure in the financial world.
Professional Beginnings
Cawkwell's career kicked off as an Articled clerk at the
accounting firm Coopers & Lybrand. He later ventured into the mining
industry in Zambia, where he worked as an accountant specializing in cost flow
and taxation forecasts for mines. Returning to the UK in 1973, Cawkwell brought
with him valuable experience that would shape his future career path.
Trading Ventures and Successes
Simon Cawkwell's entry into share trading began in 1967 at
the age of 21. Over the years, he developed a knack for short selling, making
his first significant move with a short position on MFI Group in 1973. This
trade, along with subsequent ventures, including short-selling shares in
companies like Northern Rock, Polly Peck, and Amber Day, earned him
considerable profits.
Recognition and Influence
Cawkwell's shrewd trading strategies and accurate
predictions caught the attention of the financial world. In the early 2000s, he
made notable forecasts regarding the prices of gold stocks, further solidifying
his reputation as a skilled trader. His contributions led to him being
recognized among the world's top ten most famous traders by IG Group in 2019.
Challenges in Short Selling
Despite his success, Cawkwell faced challenges, particularly
with regulations surrounding short selling. The Short-Selling Prohibition
disclosure rules implemented in 2008 restricted his activities, requiring
notification for short positions covering more than 0.25% of a company's
shares. These regulations posed obstacles to his trading strategies.
Legal Disputes and Company Involvement
Outside of trading, Cawkwell found himself embroiled in
legal disputes and involved in various company directorships. Notably, he
initiated a legal claim against Boris Fedorov, a former Russian Deputy Prime
Minister, over control of the Russian oil and gas company Gazprom.
Additionally, Cawkwell held director positions in several companies,
experiencing both successes and setbacks.
Gambling Ventures
Beyond stock trading, Cawkwell dabbled in gambling
activities, particularly on the betting exchange Betfair. He engaged in
disputes with betting firms, such as Betfair and Sportingbet, over wagers
related to sports events like soccer World Cup competitions. Despite
encountering losses, Cawkwell shared insights into his gambling experiences and
its distinctions from stock market investing in interviews.
Transition to Writing and Speaking
In recent years, Simon Cawkwell transitioned from active trading to writing and public speaking. Under the moniker Evil Knievil, he continues to share his perspectives on finance through publications and podcasts, including the "Evil Diaries" on the Master Investor website. Through his writings and speeches, Cawkwell imparts valuable insights gained from his extensive experience in the financial realm.
The Lair of Evil: Inside Simon Cawkwell's Trading Realm
Simon Cawkwell operates his business from his £1 million
flat-cum-office, known as Evil Towers, located in the upscale South Kensington
area of West London. Unlike many traders in the nearby Mayfair, he prefers this
slightly removed location. Cawkwell spends about 10 hours a day, six days a
week, glued to four computer screens displaying stock prices. Despite the
intensity of his work, he expresses genuine enjoyment, stating that he loves both
trading and sports betting.
Simon Cawkwell's Journey: From Trading to Writing and Speaking / Biography of Simon Cawkwell's
Predicting the Fall: Simon Cawkwell's Northern Rock Warning
In November 2007, Simon Cawkwell made a prescient warning
about the impending collapse of Northern Rock, predicting that its shares would
plummet to 5p. He saw the bank's troubles as an exceptional opportunity for
shorting. Cawkwell followed his own advice and pocketed his usual £1 million
profit. However, due to limitations from his bookies, he had to split his wager
through agency brokers, incurring an unexpected tax liability of £300,000.
Gambling on the Side: Cawkwell's Risky Ventures
Beyond trading, Simon Cawkwell is also an avid gambler. In a
notable instance, he bet against Sporting Index's predictions for the
performance of northern hemisphere teams against southern hemisphere teams in
the Rugby World Cup. Despite not following rugby closely since his school days,
Cawkwell ended up cashing in £250,000 by siding with the southern hemisphere.
The Highs and Lows of Cawkwell's Gambles
Simon Cawkwell is known to wager approximately £1 million
per month on racehorses, a venture that has brought him considerable success.
However, he has faced challenges finding bookies willing to accept his action
due to his winning streak. Yet, not all of his gambles are victorious, as he
does get many calls wrong. One such instance was when he lost £3 million by
shorting shares in the property company Regus, which unexpectedly rebounded
following a US bankruptcy court's approval of a restructuring plan
The Betfair Dispute and Mixed Results
Simon Cawkwell also engages in trading on the betting
exchange Betfair, where he once engaged in a dispute over his bet on Niall
Quinn's managerial position at Sunderland AFC. Despite Quinn's assurance of a
temporary role, Betfair settled the market in favor of Quinn, leading to a
disagreement with Cawkwell. While some of Cawkwell's bets have faced losses,
such as his short position against Asos, others have yielded substantial
profits, demonstrating the unpredictable nature of his ventures.
Profit of the Plunge: Mastering Short Selling
Simon Cawkwell authored "Profit of the Plunge," a
comprehensive guide on winning through short selling. Published on January 1,
1995, by Rushmere Wynne, the book offers insights and strategies for navigating
the complexities of short selling in the stock market.
Essential Tips for Novice Traders from Simon Cawkwell
- Trading the financial markets is challenging, especially for beginners. Avoid investing all your money at once when starting out.
- Learning to trade effectively takes time. Don't expect to master everything quickly. It usually takes 2-3 years to become consistently profitable.
- Courage is crucial in trading. Embrace boldness, as the saying goes, "Who Dares Wins."
- Whether it's trading stocks or betting on horses, the principle is the same: identify value by staying well-informed and conducting thorough research.
- Stay updated with the latest news, analyze each company carefully, trust your instincts, and be willing to take calculated risks to improve your trading success.
- While books and courses can be helpful, real expertise in spread betting comes from hands-on experience, staying vigilant, and putting in hard work.
- Simon Cawkwell acknowledges his fame in spread betting but emphasizes that many other successful traders exist, underscoring the importance of dedication and skill in this field.
Bear Essentials: Unveiling Forensic Accounting Secrets
In "Bear Essentials," Simon Cawkwell delves into
the realm of forensic accounting and its connection to profitable trading.
Published on September 15, 2003, by T1ps.com Limited, the book provides readers
with valuable knowledge on how to analyze financial data to make informed
trading decisions.
Evils Good: Boasts and Investment Wisdom
"Evils Good," authored by Simon Cawkwell and
edited by Tom Winnifrith, offers a compilation of boasts and investment wisdom.
Published on April 27, 2012, by T1ps.com Limited, the book presents a
collection of insights and reflections on investment strategies and market
experiences.
