By the way he had more than 2 blow outs... Well, not total blow outs (no references to the exact size), but his managed funds took giant hits both in 1987 and on 9/11.
"Last fall, Niederhoffer sold a large number of options, betting that the markets would be quiet, and they were, until out of nowhere two planes crashed into the World Trade Center. "I was exposed. It was nip and tuck." Niederhoffer shook his head, because there was no way to have anticipated September 11th. "That was a totally unexpected event."
http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm
"On Tuesday, October 20, 1987, a day after the Dow dropped five hundred and eight points, Niederhoffer and Soros played tennis, as usual. Both men had lost a lot of money in the crash, and Niederhoffer had trouble concentrating; Soros, however, was calm. Donât worry, he told Niederhoffer, the market will reopen tomorrow, and there will be plenty of opportunities to make back our losses."
http://news.kontentkonsult.com/2007/10/blow-up-artist-niederhoffer.html
The bottomline is that in 20 years on at least 4 occasions when the market went down, so did his funds...Matador also had a 30% DD in 2002 July...
