1997-2007
In 1997, Niederhoffer Investments was not finding many opportunities for investment, and having returned much of its funds to customers such as George Soros, began investing the remaining 100 million dollars in areas where Niederhoffer later admitted that he did not have much expertise. [2] Niederhoffer decided to buy Thai bank stocks, which had fallen heavily in the Asian financial crisis, his bet was that the Thai government would not allow these companies to go out of business. On October 27, 1997, losses resulting from this investment, combined with a 554 point (7.2%) single day decline in the Dow Jones Industrial Average (the largest point decline to date in index history, though not the largest percent decline) forced Niederhoffer Investments to close its doors. In a lawsuit Niederhoffer later filed in the U.S. District Court for the Northern District of Illinois against the Chicago Mercantile Exchange, where he traded options, he alleged that floor traders colluded to drive the market down that day to force him out of his positions. Traders at the time said Refco may have been responsible for as much as $35 million of Niederhoffer's losses.[3]
...
[Here comes 2007, again he isn't interested in trading any more, then blow up follows:]
Victor Niederhoffer is famous for hiring young and extremely bright traders, whom he mentors. He encourages them to develop their own trading strategies, and runs his firm more like a science lab than a traditional trading firm. In January 2007, Victor turned over most of the day to day trading at Niederhoffer Investments to his Partner Steve Wisdom, who has worked with him for 15 years. While he is still involved in the business he now devotes most of his time to his children, and reading..[7]
In 1997, Niederhoffer Investments was not finding many opportunities for investment, and having returned much of its funds to customers such as George Soros, began investing the remaining 100 million dollars in areas where Niederhoffer later admitted that he did not have much expertise. [2] Niederhoffer decided to buy Thai bank stocks, which had fallen heavily in the Asian financial crisis, his bet was that the Thai government would not allow these companies to go out of business. On October 27, 1997, losses resulting from this investment, combined with a 554 point (7.2%) single day decline in the Dow Jones Industrial Average (the largest point decline to date in index history, though not the largest percent decline) forced Niederhoffer Investments to close its doors. In a lawsuit Niederhoffer later filed in the U.S. District Court for the Northern District of Illinois against the Chicago Mercantile Exchange, where he traded options, he alleged that floor traders colluded to drive the market down that day to force him out of his positions. Traders at the time said Refco may have been responsible for as much as $35 million of Niederhoffer's losses.[3]
...
[Here comes 2007, again he isn't interested in trading any more, then blow up follows:]
Victor Niederhoffer is famous for hiring young and extremely bright traders, whom he mentors. He encourages them to develop their own trading strategies, and runs his firm more like a science lab than a traditional trading firm. In January 2007, Victor turned over most of the day to day trading at Niederhoffer Investments to his Partner Steve Wisdom, who has worked with him for 15 years. While he is still involved in the business he now devotes most of his time to his children, and reading..[7]
