How could you possibly hope to find out exactly what his proprietary models are or were? Do you expect him to share them with you? And if not, then what is your point?
Phuck Heston. For this sort of sheah you're better off with a GARCH(1,1). Use Ritchken-Trevor lattice or Jin Duan's analytical approx (Heston's proposed bollocks closed form GARCH (you can tell I like the guy, almost as much as that other jerkwad Hull with his moronic IR model) is just that - bollocks - as the process is not true GARCH - note, not talking about his stoch vol sheah here). Now getting back to Vic. Hedged? What sort of cash do you think an options trader will make being fully hedged trading vanilla products? You can make money trading some exotics hedged where the spreads are wider but Vanillas? Don't know his strategy, but I'll bet that trading Vanillas he would at most have been partly hedged. He is not playing market maker after all.
what on earth is that supposed to mean? other than a misguided attempt at casting dispersions and wallowing in falsehoods.
I agree that we are not likely to know any of these things, because VN is not LTCM and there won't be any investigation. All I am saying is, these are the questions we can learn from. Not that he blew up again. That is rumor and transient. When, where, how, why. I claim that the only one that is important, how, is the one least likely to be of importance to the gossip hounds on ET. nitro
"Casting dispersions?" Dispersions? You're quite the journalist, aren't you? May I recommend a remedial English class? That and an occasional spell check, Mr. Pulitzer.