Playing Tight - 06/30/09

June 30, 2009

Playing Tight
By Doug Kass, The Edge

In poker, playing tight means playing very few hands and entering into pots only when holding one of the best hands.

Given the risks associated with a self-sustaining economic recovery, the appropriate strategy is to play tight now.


The World Series of Poker starts this week in Las Vegas. (Here are some of the more memorable finals in the history of the tournament.
I have a bunch of acquaintances, many in the hedge fund biz, that are playing in the tournament, which is televised on ESPN over the course of the next few months.
The popularity of Texas Hold ’Em over the last decade is remarkable. Over 6,800 players were in 2008’s Main Event, with Peter Eastgate taking the first prize of $9.1 million.
In poker, playing tight (or being the rock) means playing very few hands and entering into pots only when one think he holds one of the very best poker hands.
Given the challenges discussed in yesterday’s opening missive and the general risks associated with a self-sustaining economic recovery, I believe the appropriate strategy is to play tight now.