Mon 24 Jul 2006
Oh, Vic, Vic, Vic…Damn, Son! What the…!? What are we gonna do with you? The sawnbitch gone an done it agin. Goes to show you can talk a good talk and have lots of great things to teach but that won’t necessarily translate into a good game. Take what you can that’s valuable, make it your own and walk…no…run away.
July 24th, 2006 at 10:04 pm
The specific reaction of being down 30% in May makes me think that he was just leveraged long on equities/commodities/gold/whatever.
If all I really want to do is go long with leverage, I doubt that I’d be seeking out a hedge fund…
This isn’t that horrible though. The idea of the markets is to move risk around to those that can/want to absorb it. Losses for hedge funds are that risk in action, just to the down side. Folks that can’t or don’t want to lose money won’t invest in such a volatile fund. (Or rather, when they do, start looking for systemic risk.)
July 24th, 2006 at 10:06 pm
I guess he could have been short volatility instead of being long with leverage, but the two translate into the same downside when a market turns…
July 24th, 2006 at 11:55 pm
Problem is he’s toying with that dangerous level where he has to start thinking about high-water marks and whether or not he can pay the salaries of his crew.
You’re right though, it isn’t THAT bad just you gotta laugh after ‘97. My guess is equities given his near religious bullish-no-matter-what mindset in his books. He’s the poster child for a secular bull mentality.