RONIN Capital is no more

Hey Jimmy, think we'll still be able to keep our car collections?
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rallymode said:
Any specifics on his strat? It seems like he was long vol as a hedge to long stocks so why the blow up?

It's unreal how these supposed industry veterans and experienced vol traders keep blowing up on each vix spike. Pure incompetence and recklessness.
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You can only lose that kind of money if you're short options and they blow up in your face. Maybe they took a shot and sold upside VIX calls thinking they were protected with their long VIX position, which was the hedge against their long index/equity position. The unimaginable losses on the VIX call options would have overwhelmed the whole position.
 
VolSkewTrader said:
Summary:

The founder of Parplus Partners, James Carney, had a prop group (called Wolo Capital) that was backed by Ronin from 2009 to 2017. He launched his own hedge fund, Parplus Partners, which Ronin took a $13M minority stake in (beginning of 2017). As of March of last year (2019) Parplus had close to $120M in assets under management (AUM). Looks like the same trade/strategy that worked for him while he was with Ronin (from 2009-2017) ended up blowing up both Parplus and Ronin in the process.

But if Ronin still exists, then maybe Ronin just lost their initial $13M investment and whatever gains they had accumulated with Parplus. So it's likely the real loser is Parplus and this James guy which the media mistakenly labeled as Ronin Capital, who maybe only took a $20M-$30M loss. So my guess is Ronin survived, but barely.
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They went with WOLO Capital bc YOLO was taken.
 
VolSkewTrader said:
Summary:

The founder of Parplus Partners, James Carney, had a prop group (called Wolo Capital) that was backed by Ronin from 2009 to 2017. He launched his own hedge fund, Parplus Partners, which Ronin took a $13M minority stake in (beginning of 2017). As of March of last year (2019) Parplus had close to $120M in assets under management (AUM). Looks like the same trade/strategy that worked for him while he was with Ronin (from 2009-2017) ended up blowing up both Parplus and Ronin in the process.

But if Ronin still exists, then maybe Ronin just lost their initial $13M investment and whatever gains they had accumulated with Parplus. So it's likely the real loser is Parplus and this James guy which the media mistakenly labeled as Ronin Capital, who maybe only took a $20M-$30M loss. So my guess is Ronin survived, but barely.
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They already auctioned-off Ronin's positions: https://www.reuters.com/article/cme...-firm-ronin-capitals-portfolios-idUSL1N2BD2GF
 
Looks like 90% of Parplus Partners capital was Ronin/Stafford's. So Ronin may have lost $100M+.

Ownership team - last updated 2019-03-29
Name Title Start Date Direct/Indirect % Ownership
Stanton, John, Cressy CCO 02/01/2017 Direct less than 5%
CARNEY, JAMES, W CEO 02/01/2017 Direct less than 5%
PARPLUS PARTNERS HOLDINGS LP MEMBER AND MANAGER 02/01/2017 Direct 75% or more
WAIZU HOLDINGS MEMEBER RONIN PRIVATE INVESTMENTS , LLC 12/01/2015 Indirect 75% or more
STAFFORD, JOHN, SPRINGS MEMBER WAIZU HOLDING LLC 12/01/2015 Indirect 25 - 50%
STAFFORD, JOHN, SPRINGS MEMBER WAIZU HOLDINGS LLC 12/01/2015 Indirect 25 - 50%
SOLLOG, ADDISON, MILES LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50%
CARNEY, JAMES, W LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50%
RONIN PRIVATE INVESTMENTS., LLC LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50%
PARPLUS PARTNERS HOLDINGS GP LLC GENERAL PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect Other
CARNEY, JAMES, W MEMBER AND MANAGER PARPLUS PARTNERS HOLDINGS GP LLC 04/01/2017 Indirect 75% or more

https://whalewisdom.com/filer/parplus-partners#tabadv_ownership_tab_link
 
VolSkewTrader said:
You can only lose that kind of money if you're short options and they blow up in your face. Maybe they took a shot and sold upside VIX calls thinking they were protected with their long VIX position, which was the hedge against their long index/equity position. The unimaginable losses on the VIX call options would have overwhelmed the whole position.
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Maybe they made an error and placed an incorrect trade, in the heat of the moment there was a lapse in covering or a type fat finger trade which went undetected.
 
I just signed up to ET this afternoon. Was at Ronin for over eleven years till mid 2011. Obviously a few of you were at Ronin or knew/know 3 pencil. Before that I was at two other trading firms that blew- Linnco, than Refco, which is how I ended up at Ronin Don't know how much I can add other than in these situations, generally none of the traders are made whole. The Staffords have a ton of money outside of Ronin, and if they had wanted could probably have found a way to meet the margin call, so I'm guessing they decided to let the ship sink. Anyone that wants to chat can pm me.
 
I meant 3 stick. John the third. I remember seeing your profile before it think you deleted and recollect you using Carmel as your addy. Do you know him from the car world or from trading? I
 
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