Why Madoff didn't tried a passive strategy, like buy-and-hold, covered-calls, etc?

[OTCkrak]

why didn't he buy and hold treasuries?

-b/c it was a scam

 

[Red_Ink_inc]

Quote from crgarcia:

Why Madoff didn't (at least) tried a passive strategy, like buy-and-hold, covered-calls, etc?

Ummmmm because he was running a scam?

 

[adrock1795]

I also don't understand his logic. He had enough money to buyout all the top quants and traders and could of made a decent return.

 

[Anaconda]

Quote from adrock1795:

I also don't understand his logic. He had enough money to buyout all the top quants and traders and could of made a decent return.

The money with Maddoff was actually a slush fund for certain geopolitical operations. That's why they can't find almost all of it, when there should be quite a decent chunk.

 

[crgarcia]

Quote from adrock1795:

I also don't understand his logic. He had enough money to buyout all the top quants and traders and could of made a decent return.

It appears that he lost big in with market-making strategies.

Maybe he got scared of trading?

In the long run, a passive strategy (maybe with some mild leverage), would pay out his customers interests.
Altough in the short run he would need to hide losses.
Reportedly, this is why he targeted foundations, as to avoid frequent redemptions.

 

[el pollo]

Quote from crgarcia:

Maybe he got scared of trading?

When will you get scared of starting these useless threads?

 

[Angrycat]

Quote from crgarcia:

Why Madoff didn't (at least) tried a passive strategy, like buy-and-hold, covered-calls, etc?

He would had got market results, (and maybe an excuse for the losses: "hey, the market plunged 50%, with our 2:1 leverage this was disastrous").

Because he was a thief.

 

[crgarcia]

Quote from el pollo:

When will you get scared of starting these useless threads?

Never, because they are NOT useles threads.

I am the most valuable poster in ET.
My posts warn soon-to-be traders on the low profit probabilities of short term trading.

My posts might well save millions of dollars in losses, to ET readers.

 

[R. Raskolnikov]

Or the most delusional?

Quote from crgarcia:



I am the most valuable poster in ET.

 

[Red_Ink_inc]

Quote from crgarcia:

Never, because they are NOT useles threads.

I am the most valuable poster in ET.
My posts warn soon-to-be traders on the low profit probabilities of short term trading.

My posts might well save millions of dollars in losses, to ET readers.

Nope, they're delusional, unobjective and one sided.