hedge fund blow up !

MrDinky · Jan 25, 2003

Quote from JayS:

Shorting banks.

Interesting... if that's true they might have made their money back today.

omcate · Jan 25, 2003

Quote from SethArb:

Let this be a warning to all of us to manage risk !:eek:

IMHO:

People have short memories. Ego always wins. The collapse of two famous hedge funds: LTCM and D. E. Shaw in late 1998 are much bigger warning signs than this.

andrasnm · Jan 25, 2003

most of the CTA's are still around who aply turtle trading or turtle like trend following.....I wonder why no one is talking about that?
News like this make everyone look bad or crooked.

corvus · Jan 25, 2003

They should really come up with a new name...hedge fund is somewhat of a misnomer.

nitro · Jan 25, 2003

Quote from wally_:

Wow, and you would think that someone running a hedge fund would know what risk is about. Isn't hedging about making your investments less risky?

The "hedge" in Hedge Funds is a misnomer. I would say that less than half of all "Hedge" Funds are Long/Short Neutral, let alone more complicated hedged strategies.

nitro

JayS · Jan 25, 2003

Quote from MrDinky:

Interesting... if that's true they might have made their money back today.

Clarification:

Shorting Japanese banks.

chasinfla · Jan 25, 2003

Quote from MACD_addy:

What a classic name for a fund that blows up in seven days.....

Ei-fuk-u

lol,lol, I love it! I have suggestion for the name of their next fund, they should call it .....

We-fuk-u

out of all you money that is! :eek:

MACD

Word.

garbo · Jan 25, 2003

Could this be related to that thread about how to lose $1,000,000 as quickly as possible?

Maybe the thread originator was actually gearing up to lose 300 million, and didn't want to reveal the whole truth...

ArchAngel · Jan 25, 2003

Quote from corvus:
They should really come up with a new name...hedge fund is somewhat of a misnomer.

Yeah, but it sounds a whole lot better than "Las Vegas Craps Fund"

mdl060374 · Jan 25, 2003

I have always been under the impression that hedge funds were run by experienced wall street veterans with a long track record fo success for the most part.
With all the layoffs on wallstreet in the last 1 1/2 years, and more to come, I have heard of a bunch of traders lately getting together to "form a hedge fund"... It kind of scares me thast these people think they can pool their $$ and others $$ and make a go of it in this type of market. Most of these people know nothing of risk mgt. and aspects of portfoliko mgt,

I guess my popint is that the term hedge fund is quickly losing credibilty in my eyes as everyone is jumping on the bandwagon and forming their own...