Another HF bites the dust

[turkeyneck]

Pellegrini's Hedge Fund to Return Money to Investors

Paolo Pellegrini, the investor who helped hedge-fund manager John Paulson score more than $15 billion of profits betting against risky mortgages, is returning money to clients of his own hedge fund after suffering losses this year.

http://online.wsj.com/article/SB10001424052748704488404575441572968985414.html

 

[GuyFawkes]

So fucking predictable. The HFTs' are so overdone. Since when has having one market participant dominate the market -never mind have 70-80% of the volume -ever been healthy or sustainable????
HFT's are a bubble. They are doomed. That is not to say that they don't have a part to play int the market but at a much reduced level.

& here I come to my point. For the futures traders out there. The CME group and all the major players only agenda for the past few years has been to support and promote the HFTs. What a myopic and moronic policy that will soon prove to be. Maybe the game will go on a bit longer than is natural because now the futures exchanges are as good as owned by the HFTs, so they can let the music play a bit longer. But their incomes are going down due to the ultra cheap commissions they now have to offer the big boys and the rebates they have to pay.
This is not a sustainable business plan. Especially when the HFTs are predominantly predatory now. The professionals don't want to play anymore and the general public sure as hell doesn't. Therefore volumes are likely to decrease. They probably already have significantly except the exchanges hide this by allowing the HFTs to manufacture false volume.

So here's my trade.
First of all under no circumstances give your money to people who should be fixing computers.
Secondly, short the exchanges and the big brokers if possible. Their business plan is fucked.
I'm not saying naked short -perhaps there is a long short play against another financial player that someone can reccomend???

 

[nazzdack]

Quote from GuyFawkes:
----Secondly, short the exchanges......

Be careful doing "that" with the CBOE. :eek:

 

[GuyFawkes]

let me restrict my shorts to the exchanges I know about
short cme, short liffe, short eurex,
shit exchanges, double shit business plans
but like I said, I would be interested if anyone can suggest a long to hedge against that
can't say I know much about what goes on at the cboe

 

[Eight]

Quote from GuyFawkes:


First of all under no circumstances give your money to people who should be fixing computers.

LOL, very nice piece of vaudevilian sarcasm, I nearly spit my coffee..

 

[Martinghoul]

Quote from GuyFawkes:
So fucking predictable. The HFTs' are so overdone. Since when has having one market participant dominate the market -never mind have 70-80% of the volume -ever been healthy or sustainable????

While I sorta agree with you here, what does this have to do with Pellegrini, who's a traditional macro punter, rather than high-freq? Or so I thought...

 

[GuyFawkes]

good spot.
definitely missing a T

 

[propseeker]

no, definitely incorrectly added a 'T'... on your part. your posts on this thread have zero relevance.

hf = hedge fund. hft = high frequency trading

pellegrini runs (well, now ran) a macro hedge fund. about the farthest you can get from high frequency trading.