Stealing Trading Ideas and making $$$

Quote from gymratnyc:

What do you guys think about this? This guy received some idea from a money manager and then went on and used it and made $500 million.


http://online.wsj.com/article/SB120036270913390155.html
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Actually things like this happen a lot more frequently than ppl think. I am a firm believer that there are really not many "new trading ideas" out there, most strategies are derivatives of some other strategy, etc, etc.

Take a case that I know first hand. An analyst in another group back when I was with an investment bank did something similar. A hedge fund client of the firm came and gave a presentation of his basic strategy, his intention was showing us that we were not cross margining his portfolio properly (and to a large extent, he was right). And maybe 12-15 ppl were in the meeting, relationship mgrs, risk mgrs, quants like us, and a few reps from our trading desk.

So the analyst, after the meeting, started saying that "wait, there is a *better* trade here, and this one would be more profitable than his current basic strategy". he would literally tell anyone that would listen, and eventually a brunch of us convinced him that he should talk to the hedge fund mgr directly. So he did, rang the mgr up, and went for a drink along with the RM. I heard the mgr was quite arrogant, believing that his original trade was better, etc. The analyst (who was only 2-3 yrs out of school!), had some balls, said, "do you mind if I trade using the new strategy?" And mgr literally said "well, if you can make it work, all the power to ya." (the mgr really didn't believe it would).

To make a long story short, the analyst went out and raised a bit of seed money to start trading the "new strategy". And last time I checked, his fund just crossed the 250M mark (yeah, I am an investor, but I didn't believe the trade enough to partner with him, heh). Not crazy amount, but he is beating the previous Mgr's return by a factor of 2, with less exposure overall. I bet the mgr must be kicking himself somewhere.
 
I'd be more impress if he had Bill Gates, Warren Buffet, Mark Cuban etc. as guest and friends........But Mike Tyson. Owe my Gawd!!!

Great story though. They key to the whole story was when he said.

"Can I do this trade myself?" and was told, "You'll never get approved.":D
 
Real estate is still where fortunes can be made and lost. To say this was a stolen idea is a stretch. Mr Paulson will think twice next time before blabbing about something he thought was beyond the reach of mere mortals.

Yes, Mike Tyson and Paris Hilton on guest list speaks volumes of the charactor of this guy.

The guy is 53 years old and marries a 32 year gal on his first marriage, that usually happens only after the original wife flew the coup and the guy is on the rebound and or just a fool to marry a golddigger. He is due for another setback when she takes him to the cleaners for the younger stud she hires to clean the pool and various "wells".

Stealing trading ideas in unique situations can lead to friendships going bust etfc. Regular everyday trading tactics, strategy etc are beyond stealing because it is all "OUT THERE" for free. Mr Paulson was being very generous when he sent this clown a card for his ex egotistical numbed friend to marry a bimbo that sees dollar signs.

Give the guy some credit though, he is good in real estate.
 
Typical WSJ crap, first line tells us how we should be impressed by his estate; then that he got it by stealing. What is the message here; that shady characters can get rich? BFD.
 
This guy made and lost a fortune though. He was sort of rich before. However, he did take some risk. What if the trade didn't work? However, the idea wasn't his originally and he just used it.

He's hired a PR firm for himself :) I think that most people who are rich would want to keep a low profile. Hopefully, what comes around, will go around. This guy is probably going to invest or try to make money in something else and go belly up. Hopefully, he will blow money up and end up like Mike Tyson or MC Hammer.

In my real life, I've seen some people steal stuff (ideas), and not just trading ideas. One guy I know, his wife worked as a consultant for an IT firm. After she left the firm, she started a IT firm in another country. They are doing okay.
 
This guys is the standard A-type personality,, runs for office, has 17 homes while in college?!?!, most people were to stressed for the exams to even think clearly.

He lives for the rush, the challenge, the win and let the chips lay where they may.

He is cyclical, he rises and falls , rises and falls, the trick about that is to end his life on one of those rises.

At 53, and the maturity of age and having some spectacular collapses, I hope this guys is smart enough to hold on to his 500mm at least for another 20-30 years of his life.

EF
 
you have to become an expert on security and encryption

you have to know about EM signals and how to build good cages

you need to be able to protect your RAM signals in between encryption cycles

but oh right

this is far beyond 99.9% of you

so I won't go into details, none of you are worthy of it

but the good thing is, there is no need for you guys to know anything about security cause you will never have an idea to protect in the first place

my opinion of average people is extremely low
 
Deep thoughts by Jack Handy?

http://www.deepthoughtsbyjackhandey.com/random2.asp


Quote from original:

you have to become an expert on security and encryption

you have to know about EM signals and how to build good cages

you need to be able to protect your RAM signals in between encryption cycles

but oh right

this is far beyond 99.9% of you

so I won't go into details, none of you are worthy of it

but the good thing is, there is no need for you guys to know anything about security cause you will never have an idea to protect in the first place

my opinion of average people is extremely low
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Quote from gymratnyc:

Deep thoughts by Jack Handy?

http://www.deepthoughtsbyjackhandey.com/random2.asp
More...
LMAO, you nailed the stupid bastard perfectly ... I think you fit-in quite well here - the putz said he was going to leave, but I guess his meds weren't enough for him so "He's Back" :p
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Most traders are constantly trolling around this site, and looking amongst each other, to try to steal ideas/try new things to make their trading more profitable.

It's laughable that they don't realize they aren't actually smart enough to apply when they learn, assuming they learn anything, anway.
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At least the real estate guy had the balls to use what he stole ... but nah, I definitely wouldn't be interested in being his friend anymore ... he can hang-out with Mike Tyson all he wants, we'll see how far that gets him! :D
 
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