Neiderhoffer

Discussion in 'Trading' started by timvodas, Sep 29, 2007.

  1. Sign... VN actually mentored many traders who became legends,
     
    #101     Oct 2, 2007
  2. Pekelo

    Pekelo

    Among them his brother Ray. His fund's performance in the last 5 years:

    [​IMG]

    Now the blue line is the SPX not the fund!!!! The fund broke even after 5 years, while the SPX went up 80%....
     
    #102     Oct 2, 2007
  3. Promises....promises....take your Sykes persona with you!!

    Bye Bye Timmay!!
     
    #103     Oct 2, 2007
  4. Do I have to comb over 17 pages of inane bellyaching to find out if anything happened or if this is another potshot at Niederhoffer?
     
    #104     Oct 2, 2007
  5. Apples and oranges. When you invest in a fund, either wisely or with Mr. Niederhoffer, you are generally looking to generate above market returns. You are essentially providing the fund with equity financing. However, a bank normally only charges a predefined rate of interest. With debt financing, it does not share in your upside if you happen to, say, buy a house and sell it for double in a couple of years. Therefore, since it does not share in your upside, there is little rationale for it to share in your potential downside. That is the basic difference between equity financing and debt financing.
     
    #105     Oct 2, 2007

  6. ''The fund uses a primarily contrarian strategy"

    Apparently. Market go up. Fund go down.
     
    #106     Oct 2, 2007
  7. #107     Oct 2, 2007
  8. #108     Oct 2, 2007
  9. nitro

    nitro

    If I may, let me propose something.

    1) First, we must assume VN is not dumb.
    2) Assume VN was not gambling, and that his position was trading some edge.

    What I am trying to say is, give the man credit, and learn from it. If those two assumptions are true, there is much to be learned. For example, here is a crucial insight into option markets: If there are no jumps, you can arb vol.

    Did VNs model neglect jumps, or did his model give them an extremely unlikely probability? What was his model? Was it stochastic vol model, local vol model, Heston? etc etc etc?

    nitro
     
    #109     Oct 2, 2007
  10. Probably his position is not hedged at all. So no need for stochastic vol, local vol.
     
    #110     Oct 2, 2007