Among them his brother Ray. His fund's performance in the last 5 years: Now the blue line is the SPX not the fund!!!! The fund broke even after 5 years, while the SPX went up 80%....
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?
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.
Whether it's true or not, the news seems to be traveling outside ET boundaries. http://www.tradersnarrative.com/rumor-vic-niederhoffer-blows-up-again-1346.html
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