‘THE WALL STREET JOURNAL. Saturday/Sunday, April 24 - 25, 2010 Dr. Henry Jarecki gave up the practice of psychiatry to make millons of dollars running one ofthe words largest commodities houses. Here, In the parior of his home and office at Gramercy Park South in Manhattan. From Healing to Making a Killing By Canouyn Cut Dr. Henry Jarecki practiced psyehiatry for over a decade. S80 when he abandoned his practice to begin a silver-trad- ing business, some family and friends thought he was alittle nuts, “Suddenly somebody who has been seeing a lot of pa- tients left,” said Dr. Richard Lewis, who completed his resi dency with Dr. Jarecki at Yale University. “Who does that ‘The unconventional move ‘worked for Dr. Jarecki, who now ‘runs one of the world’s largest ‘commodities houses, the $8 bil- lion Gresham Investment Man agement LLC. The 77-year-old ‘metals trader was destined to be 4 psychiatrist, following in his father’s footsteps. But the wor- kaholie—friends can't identify any of his nonwork-related hob- bies—always had a trading streak. He had no fear of swap ping one discipline for the other because both psychotherapy and business are all about identify ing pattems, in behavior or in markets Once you find the pattern, he said, you can “transform a mod: est effort into a grand result.” TToo grand, some would say. Dr. Jareck! is what is known as a passive investor, someone who trades futures contracts of com: rmodities without taking delivery of them. Typically, Dr. Jarecki buys commodities futures and takes 2 long position, which means he expects they Will rise in value. He then sells them be- fore expiration, replacing them with new contracts. Crites dub this speculation and argue this distorts market fundamentals because they lock up supply without ever taking the com: modities off the market. They blame investors like Dr. Jar fecki for pushing up fuel and food prices around the world due to their concentrated holdings, ‘Passive speculators are an invasive species that will con: tinue to damage the markets until they are eradicated,” said hedge-fund manager Michael Please turntopage B3