Interestingly, you are correct. There are multiple managers who have blown up spectacularly only to come back with more backing and capital than ever before. That's the way the market works. Doesn't make sense until you understand big risk equals big rewards. . The belief is if the guy can lose huge, he can also win huge. No one likes a grinder in the big time, might as well buy Govt Bonds
t's worth noting that Niederhoffer is not important, from a capital-markets point of view. While he was being profiled by Cassidy, his hedge funds managed at most a few hundred million dollars, most of them his own. But what he lacks in size he makes up for in ego and in sheer color: Cassidy doesn't neglect to delve into Niederhoffer's personal life, which includes weekly commutes between his wife, in Connecticut, and his mistress, in New York. http://upstart.bizjournals.com/view...08/the-third-fall-of-victor-niederhoffer.html
this is for the hero worshipers on this thread: here is the difference between neiderhoffer and the pros at goldman. neiderhoffer lost a big bet on the thai baht. goldman bought stock in a publicly traded hotel chain with real estate assets, at roughly the same time, obviously real assets and primarily in thailand. the stock 3x with in a few months.
article is seven years old. what does his wife have to do with anything? It demonstrates moral character, people don't change.
the bottom line is that he is a talented guy in some area, including squash. Historically bad trader when volatility comes around.