That's how most MMs get a big reputation... "getting away with it" on big risk... until the time it doesn't work, of course.
When Bill Met Freddie On December 31, Freddie Mac shares were worth $34.07 apiece, and Bill Miller owned 15 million of them. By March 31, Freddie Mac shares had fallen 25% to $25.32 each, and Bill Miller owned 50 million of them. As of July 31, Freddie Mac shares had collapsed all the way to $8.17. And Bill Miller owned 80 million of them. Anybody else getting the impression that Bill Miller is one of the world's worst bear market fund managers? http://www.portfolio.com/views/blogs/market-movers/2008/08/12/when-bill-met-freddie
I feel bad for the guy. A lesson to all. Don't let money define you. Or when you lose it you'll lose yourself.
They really are. Even in the tech meltdown I never saw a "name" manager get stuck with such a hideous cannonball.