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Broker reports that the order is filled. Manager then directs the broker to allocate the trades. Protocol is to provide the allocation after the order is filled

Sorry that you have to go thru this but what an institutional investor would have done off the bat would first review his audited financial statements and his annual returns. Then scrutinize the deviations in returns etc. Also many other due dillagence steps but that’s another conversation.

I’d have to agree with you on that point: if manager shorted some options at $2 premium and then another batch at $4 you can’t disadvantage a large percentage of your investors. Id have to look at the specific scenereo. Also one of the investors stated that the manager stayed in the position...

It’s not irresponsible to have an IRA invested in managed futures in my opinion (not sure what ERISA rules are on this), however what is completely irresponsible was this guys risk control. I’ll research this as details come out but it appears this manager had his clients levered from 50 to 500...

Absolutely, you are correct. So as an example let’s say the manager is getting Long Crude oil and he buys 500 contracts at $55 (the order was to buy 1000 lots at 49.95 with a 50 limit in this simulation). In this case the clients would get a pro rata allocation. If all 1000 were purchased at...

A $200k account should definitely have a different unit size then a $50k account

Typically the trade is placed and then executed; when the broker confirms that the order has been filled the manager (option seller in this instance) would dictate the breakdown.

Niederhoffer

First he would have to meet a huge margin call. Then with a massive short natty futures position he’d have to post massive margin. I’m not probably right I’m definitely right; it’s the definition of a margin call. Amaranth, Neuderhoffer, LTCM , MF Global were all massive margin calls that...

“Highly Respected “ not any more

He can’t take the position because the margin is Huge.