LJM Preservation and Growth Fund, collapsed by 82 percent! (WTF?)

[nickynoes]

Not sure why nobody made a fund with a stupid name like that as a joke.

Bagholder fund
Buy high sell low fund
Margin called often fund

Maybe it hurts attracting investor money. Maybe that's it. It's all about marketing yourself right?

Up bigly fund
Yuuuuuuge money fund
MAGA fund

Hmm I remember in one of the market wizard books were a trader talked about how he opened a fund called LS. It originally stood for Larry Shag (spelling?) which was a term they had in the city he was from of a person who was a bit of a gambler or a 'gunslinger'.

Later he told his clients it stood for long short instead, as he was afraid the actual meaning would scare clients away.

 

[turkeyneck]

"Preservation" 18% of capital

 

[zdreg]

Maybe I'll Make a Moderate Profit

that was the attraction of the Madoff scam. it was the sales pitch of a moderate consistent profit of 12% per year.

 

[newwurldmn]

Wow, this is big. I remember when they took that 67% hit in 2008 and came back from that swearing it would never happen again.

The preservation and growth fund made money in 2008. Other funds of theirs blew up.

https://www.ljmpartners.com/performance-history?qt-performance_history=1#qt-performance_history

In light of that, It's even more shocking they would blow up on an event like this Monday which wasn't that bad in the vol world.

 

[jharmon]

 

[d08]

that was the attraction of the Madoff scam. it was the sales pitch of a moderate consistent profit of 12% per year.

I'll try again.
Maybe I'll Make a Moderate Inconsistent Profit With High Volatility But Most Probably Will Go Bust Capital Management.

 

[ironchef]

The preservation and growth fund made money in 2008. Other funds of theirs blew up.

https://www.ljmpartners.com/performance-history?qt-performance_history=1#qt-performance_history

In light of that, It's even more shocking they would blow up on an event like this Monday which wasn't that bad in the vol world.

Minimum investment: $3M, so their investors are not mom and pop and supposed to be well heeled.

Maybe they got careless after all those years of gain betting on low volatility and forgot to hedge this one time? However, they are not hurting collecting 3.3% fee. Poor investors though.

 

[RedDuke]

Here is a bit more info:
https://www.zerohedge.com/news/2018-02-07/vol-selling-fund-disintegrates-down-80-2-days

The question is were they liquidated? If not, a big chunk of that loss was erased during Tuesday rally.

What happened on Monday night was a lot worse than 2008 (from options pricing perspective). Just 1 example, February Week2 1550 puts (1000 points away from the market) were trading at 9 points. This was pure madness.

The rumor is that ETNs liquidations like XIV were part of the root cause.

 

[misterkel]

Funds should be named after the founders to keep it simple.

Ben Dover fund would be appropriate.

 

[Maverick74]

The preservation and growth fund made money in 2008. Other funds of theirs blew up.

https://www.ljmpartners.com/performance-history?qt-performance_history=1#qt-performance_history

In light of that, It's even more shocking they would blow up on an event like this Monday which wasn't that bad in the vol world.

You are correct, it was there aggressive main fund that had a 63% drawdown. This was suppose to be the conservative strategy.