Early Life and Education
Michael Edward Platt was born in Preston, Lancashire, England, on March 18, 1968. His father was a civil engineering professor at the University of Manchester, and his mother was a university administrator. Platt's interest in finance was sparked early on, thanks to his grandmother, who was a serious equity trader and introduced him to the world of investment. At the age of 14, he invested in a shipping line and saw his investment triple. He studied civil engineering at Imperial College London for a year before switching to mathematics and economics at the London School of Economics, graduating in 1991.
Rise to Success
Platt began his investment career in the City of London in 1991. He joined JP Morgan, where he quickly rose through the ranks, taking responsibility for developing the bank's swaps and options trading business. In 1996, he became the head of trading for all swaps products related to the 11 founding states of the European single currency. In 2000, Platt co-founded BlueCrest Capital Management with William Reeves. Under Platt's leadership, BlueCrest grew to become one of the largest hedge funds in Europe, managing over $35 billion in assets at its peak. In 2015, Platt made a strategic decision to return external investor capital and transform BlueCrest into a private partnership, managing only the wealth of its partners. This shift allowed for a more focused investment strategy and remarkable returns.
Key Business Strategies
Platt's investment strategy is characterized by a balance of systematic, algorithm-based approaches and discretionary trading. He is known for rigorous risk management, including the use of aggressive stop losses. Platt's foresight was demonstrated during the 2007 financial crisis, where he made strategic decisions to protect BlueCrest's capital and generate profits. In 2019, BlueCrest's trading operation returned 53.5% net after expenses.
Philanthropy
Platt is involved in various charitable activities, particularly in education and the arts. He supports education through funding scholarships for underprivileged students. Platt also has a baking business, Michael's Desserts, which operates on a “buy one, give one” model, donating desserts to those in need.