Schadenfreude Warning: "Karen the Supertrader"

[Macca1]

What's more sad is she actually was giving 50% of her fees to a charity

More like she was acutally "guilt-tripping" 50% of her fees to a Charity.

 

[i960]

Oh man, such cosmic justice here - especially to all the people who called BS on this "trader" ages ago.

 

[der_kommissar]

What a fucking disgrace. According to the SEC complaint, Karen's fund pays the incentives to the fund manager based on realized gains, and unrealized losses are basically ignored. With that kind of incentive structure, any monkey can be a super star manager. You perpetually roll your losing positions over to the next contract, thus indefinitely postponing the realized losses, and get regularly paid on the realized gains. That's a totally genius scheme, and yes, a fraudulent one.

Seems like every time we hear about an extraordinary market performer, he or she turns out to be a common financial fraud/thief.

She must have learned this accounting from some of the TBTF institutions that were utilizing a similar con back during the crisis...Of course, Uncle Sugar had their backs and made some of those pesky "unrealized losses" whole again...

Still, she is a disgrace as were her promoters.

 

[DallasCowboysFan]

I wonder if the Tasty Trade people have said anything about this.
I bet they feel foolish.

 

[Macca1]

What I'm trying to get my head around is that in the Tasty Trade interviews, Sosnoff talks about how he used to monitor Karen's positions/ risk- Just like they do with all clients( I assume under TOS) . So if Sos and the TD family knew what was going on, why did they put her on a pedestal and ramp her so hard via Tasty Trade? Even if Sos didn't know directly, surley someone in the family knew what was going on?

 

[i960]

Sheesh:

 

[Texas Johnny]

The last interview on TT was about 6 weeks from the Oct 2014 debacle. She was up 11.5% net fees according to the interview. I can believe that as vol was low and selling strangles worked...until...

Here's a good article that basically says leverage was her Achilles heel.
See below.

Regarding her communication skills with investors....very Ponzi like. I'm just touching on the actual trading style. Overall, selling premium works great over the long haul. Just keep your size in tact. That's what Sos always says. I agree 100%.

http://macro-ops.com/karen-the-supertrader-goes-rogue/

 

[i960]

Once the blow up happened it became 100% ponzi:

 

[ScalperJoe]

Once the blow up happened it became 100% ponzi:

Yes, typical of any ponzi, some investors get out with a BANG, and others are left holding the BAG.

 

[Chubbly]

What I'm trying to get my head around is that in the Tasty Trade interviews, Sosnoff talks about how he used to monitor Karen's positions/ risk- Just like they do with all clients( I assume under TOS) . So if Sos and the TD family knew what was going on, why did they put her on a pedestal and ramp her so hard via Tasty Trade? Even if Sos didn't know directly, surley someone in the family knew what was going on?

I think Tom knew. I seem to recall one segment where Sosnoff said he wouldn't invest in her fund