Neiderhoffer

Quote from codedeep007:

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[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] [/B]
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Sign... VN actually mentored many traders who became legends,
 
Quote from pepper_john:

VN actually mentored many traders who became legends,
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Among them his brother Ray. His fund's performance in the last 5 years:

my.php


Now the blue line is the SPX not the fund!!!! The fund broke even after 5 years, while the SPX went up 80%....
 
Quote from dtan1e:

so did VN blow up? incidentally i can never pronounce his surname the N..., who tf have surnames like that?
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Do I have to comb over 17 pages of inane bellyaching to find out if anything happened or if this is another potshot at Niederhoffer?
 
Quote from JSSPMK:

What I would like to know is this.

When you invest your money in a fund (any fund) and they lose your money, there is nothing you can do as you accepted risk at time of handing over funds.

On the other hand when a bank invests money in us by way of lending and when we can't meet repayment commitments lender comes after our assets and possibly bankrupts us (well we do that ourselves).

Nice to be a pawn :)
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Apples and oranges. When you invest in a fund, either wisely or with Mr. Niederhoffer, you are generally looking to generate above market returns. You are essentially providing the fund with equity financing. However, a bank normally only charges a predefined rate of interest. With debt financing, it does not share in your upside if you happen to, say, buy a house and sell it for double in a couple of years. Therefore, since it does not share in your upside, there is little rationale for it to share in your potential downside. That is the basic difference between equity financing and debt financing.
 
Quote from Pekelo:

Among them his brother Ray. His fund's performance in the last 5 years:

my.php


Now the blue line is the SPX not the fund!!!! The fund broke even after 5 years, while the SPX went up 80%....
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''The fund uses a primarily contrarian strategy"

Apparently. Market go up. Fund go down.
 
If I may, let me propose something.

1) First, we must assume VN is not dumb.
2) Assume VN was not gambling, and that his position was trading some edge.

What I am trying to say is, give the man credit, and learn from it. If those two assumptions are true, there is much to be learned. For example, here is a crucial insight into option markets: If there are no jumps, you can arb vol.

Did VNs model neglect jumps, or did his model give them an extremely unlikely probability? What was his model? Was it stochastic vol model, local vol model, Heston? etc etc etc?

nitro
 
Quote from nitro:

If I may, let me propose something.

1) First, we must assume VN is not dumb.
2) Assume VN was not gambling, and that his position was trading some edge.

What I am trying to say is, give the man credit, and learn from it. If those two assumptions are true, there is much to be learned. For example, here is a crucial insight into option markets: If there are no jumps, you can arb vol.

Did VNs model neglect jumps, or did his model give them an extremely unlikely probability? What was his model? Was it stochastic vol model, local vol model, Heston? etc etc etc?

nitro
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Probably his position is not hedged at all. So no need for stochastic vol, local vol.
 
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