Blair Hull
Blair Hull is an American businessman, investor, Democratic politician, and philanthropist.
Hull founded Hull Trading Company in 1985 and served as the firm's Chairman and chief executive officer before selling it to Goldman Sachs in 1999 for $531 million. The company, which leveraged technological innovations and quantitative models, was one of the world's premier market-making firms, trading on 28 exchanges in nine countries. Hull went on to found Hull Investments, LLC in 1999 which serves as a family office for three generations of the Hull family, and acts as parent company to a number of financial entities. In 2009, Hull founded Ketchum Trading, LLC, a proprietary trading firm that traded and provided liquidity in futures, options, cash equities and exchange-traded funds. And in 2013, Hull created Hull Tactical Asset Allocation, LLC. HTAA operates an actively managed ETF and utilizes advanced algorithms as well as macro and technical indicators to anticipate future market returns.
Trader Monthly recognized him for having executed one of "The 40 Greatest Trades of All Time" and Worth Magazine named him one of "Wall Street’s 25 Smartest Players." Hull has also been honored by The Options Industry Council as the 2014 recipient of the Joseph W. Sullivan Options Industry Achievement Award" in recognition of his outstanding lifetime contributions to the growth and integrity of the U.S. options market.
A longtime political activist and donor, Blair Hull sought the Illinois Democratic Party’s nomination as candidate for the U.S. Senate in 2004 as a champion of universal healthcare and efficiency in government. Barack Obama ultimately won that primary. Blair Hull remains active in the political arena as both an activist and donor.
Early life and education
Early years
Blair Hull was born in 1942, the son of Marson Hull and Jean Matlock Hull, and raised in Los Gatos, California—near what would later be called Silicon Valley. After completing high school, Hull went to work on the assembly line of a cannery factory to help support his family, ultimately joining Union Local 679 and earning himself a union card by the age of 19.During the Vietnam buildup, Hull served six years in the United States Army. After reaching the rank of lieutenant and completing his military service, Blair Hull turned to the classroom, teaching high school level math and physics before becoming a student again himself and going on to higher education with the GI Bill, as his father had done before him.
He earned his Bachelor of Arts degree in Mathematics from the University of California, Santa Barbara, his MBA from Santa Clara University and graduated from the Harvard Owner/President Management Program.
While working full-time at a manufacturing company, Hull tested his mathematical and analytical skills at the blackjack tables in Las Vegas, where he proved to be a skilled and disciplined player. Hull took his accumulated winnings to the Pacific Stock Exchange, then to the Chicago financial exchanges. Once there, he established himself as a pioneer in the trading industry, revolutionizing the financial markets through the use of innovative models and state-of-the-art technology.
As Founder of Hull Trading Company, Blair Hull built a business from scratch in Illinois, created hundreds of jobs, and grew his company into one of the most successful trading firms in the country.
Beating the Odds
Trained in mathematics and computer science, Hull applied his skills to the Las Vegas blackjack tables in the 1970s. He beat the odds—or, rather, beat the house by shifting the odds in his favor—by devising intricate mathematical formulas that called for a skilled team of card players to help determine when and how to bet in blackjack. The team consistently turned a profit. Their story is outlined in the book The Big Player by Ken Uston.Hull left the blackjack tables with $25,000 and took his winnings to the markets—first leasing a seat on the Pacific Stock Exchange, then starting a firm on the Chicago financial exchanges.
Business career
Hull Trading Company
- Hull Trading Company 1985–1999
The company was a global leader in the application of computer technology to listed derivatives trading. Hull developed a proprietary and large scale reliable distributed system architecture, providing automatic real-time pricing, risk management, market making and interconnection with automated options, futures and stock exchanges as they became available. Hull's massively scalable software technology was deployed to cover both domestic and international markets as electronic, on-line exchanges became available, while innovative hand-held computer technology was employed at exchanges still requiring execution by floor traders.
The firm grew to over 250 employees including financial engineers, physicists, almost 100 software engineers and computer support staff. At its peak, Hull Trading Company moved nearly a quarter of the entire daily market volume on some markets, executed over 7% of the index options traded in the United States, 3% of the equity options, and 1% of all shares traded daily on the New York Stock Exchange.
In 1999, Blair Hull sold his company to Goldman Sachs for $531 million.
Hull Investments, LLC
- Hull Investments, LLC 1999–Current
Ketchum Trading, LLC
- Ketchum Trading, LLC 2009–2018
Ketchum Trading was a privately held, proprietary trading firm, based in Chicago, Illinois.
Driven by algorithms and technology, this proprietary trading firm made markets and traded in futures, options, cash equities and exchange-traded funds.
Hull Tactical Asset Allocation, LLC
- Hull Tactical Asset Allocation, LLC 2013–Current
Political career
Advocacy
- Women's Reproductive Health, Gender Equity
In Illinois, Hull has been recognized by the Illinois General Assembly for his lifelong advocacy and dedication to protecting the rights of all women, and has been honored as a Lifetime Activist by Personal PAC, Illinois' largest and most influential pro-choice organization.
Blair Hull, along with his daughter, also played a critical role in the landmark Supreme Court decision surrounding Title IX, Cohen vs. Brown University which leveled the playing field for women in sports. Hull served on the Board of the Women's Sports Foundation, and he endowed the first Chair in Women's Studies at his alma mater, University of California, Santa Barbara
- LGBT causes
Hull has also been a generous supporter of the Human Rights Campaign, Equality Illinois, Lambda Legal Defense Fund, and Test Positive Aware Network.
- Donor
2004 U.S. Senate race
Blair Hull ran in the 2004 Illinois Democratic Primary to be the party's United States Senate nominee. The Senate seat had been vacated by retiring Republican Senator Peter Fitzgerald.Hull's candidacy brought a unique background to the crowded Democratic field.
The 2004 Democratic Candidates for the US Senator for Illinois were:
- Blair Hull
- Barack Obama
- Gery Chico
- Dan Hynes
- Maria Pappas
- Nancy Skinner
- Joyce Washington
During the campaign, Hull railed against the corporate special interests and their influence in Washington. He advocated universal healthcare, greater efficiency in government, campaign finance reform, and re-importation of prescription drugs.
Hull garnered nationwide attention for inviting scores of prescription-drug dependent senior citizens to travel with him aboard his campaign buses across the US/ Canada border to Windsor, Ontario to purchase their medications at dramatically lower prices. The trips served to focus media attention on the rising costs of American healthcare, and to frame the debate as the campaign moved forward.
Hull largely self-funded his campaign for Senate, spending a record $29 million of his own money on the race.
While he often led early polls, Barack Obama succeeded in winning the election, Blair Hull finished third. Hull dropped significantly in the race when allegations of spousal abuse were revealed. Hull remains active in Democratic politics, both as an activist and a donor.
Academic publications
"A Practitioner's Defense of Return Predictability" by Blair Hull and Xiao Qiao, May 26, 2015"Return Predictability and Market-Timing: A One-Month Model" by Blair Hull, Xiao Qiao, and Petra Bakosova, October 10, 2017
"Seasonal Effects and Other Anomalies" by Blair Hull, Petra Bakosova and Alexander Kment, April 28, 2018
Philanthropy
Hull Family Foundation
Blair Hull and his four adult children partnered to create the Hull Family Foundation in 1999.The Hull Family Foundation seeks to promote social justice and believes education is a key factor in initiating change.
The Foundation also supports art and culture, as well as efforts to promote and maintain healthy, sustainable ecosystems.
Board Membership
Blair Hull has served on the board of directors of the Chicago Board Options Exchange from 1988 to 1990, the Board of the Options Clearing Corporation from 1992 to 1998, and BARRA, Inc. from 1992–2004.He formerly served on the Foundation Board of directors for NARAL and the board of directors of Chicago Council on Global Affairs.
Blair Hull is a member of the Board of Trustees of the University of California Santa Barbara Foundation and in 1998 he endowed the first Chair in Women's Studies at University of California, Santa Barbara.
Hull is a member of The Economic Club of Chicago, and the Union League Club of Chicago.