Circle T trader looses 12 mil on google

Quote from sammybea:

I'm a little perplexed on how this is a news story. When did losing less than 5% on a fairly small hedge fund become news? I would think there are trades in all hedge funds that break their internal risk/reward parameters. Personally, if you can't risk 5% once in a while, I don't want to be part of that fund.
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Because the media has turned into a bunch of gossipy queens, weeks and weeks of supposed hedge fund rumors, and not one bit of solid news.
 
Quote from sellingrich:

There was an article in the April/May Trader Monthly mag :
"Peterffy to CITI:No do-overs"
When regulators mull new rules, they often quietly consult Thomas Peterffy, the powerful founder of options-market-making titan Interactive Brokers Group. Peterffy, it seems, is a stickler for rules. When Citigroup recently made an inadvertent QQQQ order (a bad data feed led to an automatic fill on 950,000 contracts, leaving Citi holding an $18 million loss), two market makers, Wolverine and Morgan Stanley recognized the goof and agreed to bust up the trade, knocking Citi's loss down to &7 million. However, IBG's Timber Hill showed no such mercy. "The industry is aware of our position on busting trades, "a company spokeswoman says.-----

My point is, I'm glad they are consistent. The application says, there will be no margin calls, boom, you're liquidated, I'm glad they are as responsible as I am.
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What is Citi using to control their order entry software Excel? They need some basic AI application to validate price ticks as well as orders against business rules as well as hard limits that can't be violated. How you could even get a fill on a number like 950,000, I don't know.
 
Quote from Lefty62151:

Couple of things on this subject.

First, I am responsible for and monitor the trading records of those who work in my office. If we found an "error" of this magnitude in my office, I would be fired along with the trader who caused the problem.

In my opinion, there is NO EXCUSE for not monitoring the daily P&L of YOUR OWN OFFICE STAFF!

Since Mr. Tobias is one of the highly paid fat cat fund managers, instead of firing him, I would suggest he repay the investors from his own account.

Ridiculous.

This one goes up on our office billboard.

Lefty
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I agree. What kind of risk manager doesn't see a $12 million loss?
 
You need to know what was unauthorized about the trade. Did he xceed a trading limit? A loss limit?

Knowing which broker took an 'unauthorized' trade would be good too.

Or simply you're not allowed to lose money so he got fired and the trade was written off to investors as 'unauthorized' to avoid smacking down their return report to shareholders?

The B'berg article doesnt tell you anything.
 
It sounds like Tobias is looking for a scapegoat for his poor performance. His $250 mil fund is down 'high teens' percent this year. Assuming 18%, that's $45 million and the Goog loss is not much more than a quarter of that.

Methinks he doth protest too much.
 
Quote from calends:

It sounds like Tobias is looking for a scapegoat for his poor performance. His $250 mil fund is down 'high teens' percent this year. Assuming 18%, that's $45 million and the Goog loss is not much more than a quarter of that.
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I think this kind of news is what we can expect to hear more in the mid-term future.

The hedge fund bubble is not going to burst with a loud bang but rather shrink fund after fund.
 
Quote from calends:

It sounds like Tobias is looking for a scapegoat for his poor performance. His $250 mil fund is down 'high teens' percent this year. Assuming 18%, that's $45 million and the Goog loss is not much more than a quarter of that.

Methinks he doth protest too much.
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what i dont understand is this.
this guy used to get prime time on cnbc.
250 mil is a chump change, i guess cnbc couldnt lure a big time manager to speak.

maybe they thought he was going to be a star short selling with Doug Kass or something.
 
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