Another gambling Hedge Fund goes under: LJM Partners

S

short&naked

http://www.ljmpartners.com/content/history.html

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Read all about his strategy and his Ph.D. risk manager here:

http://ljmpartners.com/content/PDFs/ActiveTraderMagazine.pdf
http://ljmpartners.com/content/PDFs/ActiveTraderMagazine_part2.pdf

All the academic voodoo won't help you in this market. Never has, never will:

http://ljmpartners.com/content/PDFs/LJM_LongVolatilty_10Feb2008.pdf
 
Quote from short&naked:

......Seriously........
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1) His second month of operation, August-1998, he had a ~37% MONTHLY loss. This should have scared anybody away from ever, ever investing with him.
2) July-2002, a ~46% loss. Come on! His exit strategy is badly flawed.
3) October-2008, another huge loss. This guy likes to eat like a bird and dump like an elephant. :cool:
 
Quote from nazzdack:

1) His second month of operation, August-1998, he had a ~37% MONTHLY loss. This should have scared anybody away from ever, ever investing with him.
2) July-2002, a ~46% loss. Come on! His exit strategy is badly flawed.
3) October-2008, another huge loss. This guy likes to eat like a bird and dump like an elephant. :cool:
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Yup! He explained that he tried to time the bottom on the SP500 in 2002... he then "learned' his lesson. Sounds to me like he tried it again.

http://ljmpartners.com/content/PDFs/ActiveTraderMagazine.pdf
http://ljmpartners.com/content/PDFs/ActiveTraderMagazine_part2.pdf

This is where quantitative risk management gets you.
 
Risk management? These guys were selling naked puts :p I am amazed they can talk dumbass investors into paying 2/20 for their 'expertise' to short naked ES options.
LJM trades options on S&P Futures as its primary investment vehicle and based on the specific LJM strategy may also trade S&P, VIX and Variance Futures contracts along with associated derivatives.
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Fat tail events happens rarely, but when they happen they tends to wipe you out.
 
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