You ever hear of one of Karen the Supertrader’s Clients suing her?

bone said:
Where do you Karen fanboyz conclude that she was doing so great for such a long time ?
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Where did you get that I was a fan of her? Anyway, if you do a search on ET, the first Youtube/TT video of her came out in 2012 and she was already big then, managing 160M. A few years later TT did a recap with her and she was doing fine and still big, so there you have 4-5 years of big money management. I even quoted numbers in some of the threads, one year she was up 30% by October.

https://www.elitetrader.com/et/threads/karen-the-supertrader.254837/

So let's just assume we are right about her good years. Can you see why she doesn't have to worry about her retirement?

The real mystery is that she lost money during average market conditions, when the Yahoo boys using her strategy were making profits hand over fist. That is the part I don't get...
 
bone said:
Where do you Karen fanboyz conclude that she was doing so great for such a long time ? Look at the SEC filings. The SEC filings state that the NFA performed an audit and found that she had actually LOST $50M and was rolling the losses forward used long dated options expiries whilst issuing fraudulent account statements to clients. She’s a mini-Madoff.

I mean, who TF trades options exclusively and doesn’t concern themselves with Delta?
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tastytrade said her AUM was $190M and she made $105M?

https://steadyoptions.com/articles/karen-the-supertrader-myth-or-reality-r110/
 
It surprises me too. Are people really that stupid? She is a criminal with a criminal record. Why would any investor in his right mind wait to invest with her again? I believe from the bottom of my heart that some individuals, even some on this website, try their utmost to divorce themselves from their savings and investments. In the end they will probably exactly get what they hoped for. In that we shall all be happy.


bone said:
There’s a bit of a misconception here that just because Karen Bruton paid a $1.5M fine that it’s the same as getting a speeding ticket dropped in exchange for attending driving school. She consented, she agreed to, a federal judgement against her. Nowhere in that agreement does she deny wrongdoing. It’s a better outcome than a trial judge’s verdict but let there be no doubt - that judgement, disgorgement, and civil penalty follows her everywhere.

At present Karen Bruton is not allowed to register as a Certified Public Accountant. She is banned from regerstering until an SEC public hearing can be held.

https://www.sec.gov/litigation/opinions/2018/34-84627.pdf

“On September 13, 2018, Bruton consented to entry by the district court of a final judgment against her. The judgment ordered Bruton to pay disgorgement and civil monetary penalties. It also permanently enjoined her from future violations of Advisers Act Sections 206(1), (2) and (4) and Rule 206(4)-8 thereunder.”
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Lol, a 100m or 200m fund does not lose 50m all the time. What's with your justifying her the entire time?

Pekelo said:
Thanks for the explanation Bone, so it is possibly the end of the road for her? Sweet retirement?



Funds lose money all the time. It was not the loss but the cover up what got her into trouble...
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I can tell you, and perhaps @sle can add his own wisdom (he knows a thing or two about fund performance and remuneration). Managing a 100m fund hardly makes anything for the PM. Not sure what her profit share was but it does not appear that she has a whole lot of money left after she was taken to the cleaners by lawyers and the justice system (for good reasons)

Pekelo said:
And here we have to disagree. She had 3-4 good years managing 100+ M before the loss and while the court case was proceeding she was STILL managing around the same size account, so that is at least one more good year, while her strategy has been working fine.

You know better than me, so make an educated guess how much a HF manager makes in 5 good years, managing that much money. She only paid 1.5M as penalty, even with lawyers' fees that is less than just one year salary.

So unless a few more of her costumers sue her now AND manage to get some bucks out of her (unlikely), she is sitting pretty in retirement and probably have enough dough on her own to trade.

I don't think she needs to worry about preparing tax returns for OTHERS...

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In a way, the court case helped her. While she was making the scheme trades the money was tied down and she couldn't make profits, just breaking even while carrying the losses. Once the loss was realized, she was able to go back and write puts in Sweet Bobby style and make money....
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GRULSTMRNN said:
What's with your justifying her the entire time?
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Please quote me justifying her. I want to know the facts, and I usually describe the facts. If you don't like that, tough shit.
The thing is, she is sitting pretty right now. She might be done as a manager, but she doesn't have to work ever in her life again. That 100K SEC fine a few years back saved her from future lawsuits, because she started to disclose more. As a result her investors have no legal standing, because they knew from then on what they signed up for. Stupidity and greed, go hand in hand...
 
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