Did Niederhoffer Lie To Baron?

Discussion in 'Chit Chat' started by Pa(b)st Prime, Sep 26, 2007.

  1. A few weeks back I started a thread based on information I received about Vic Niederhoffer blowing up his Matador Fund in the day's before August Opex. I made no claim to the accuracy of my source although it was someone with ties to Vic's operation. He had no axe to grind. Even as an alias on a message board I wouldn't ipso facto print information about someone real if I thought the charge was bogus.

    The thread was a viewership success. 12,000 hits it's first day. Vic's posse, including Marketsurfer, after a dozen denials, finally admitted that Vic took a body blow. Alas the thread was deleted by Baron. In a subsequent Feedback thread Baron explained his decision.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=102468

    Today I received more information. The WSJ is working on a Vic story. Key elements: Matador has lost 93% of it's funds. Vic's clearing house forced liquidation of his position. Vic was short 15,000 Mch08 1000puts. Vic is in "hiding" somewhere in NYC.

    Remember this story broke on Elite Trader!
     
  2. what is MCH?
     
  3. nkhoi

    nkhoi Moderator

    march 08?
     
  4. ]

    heheheh...
    Oh so 1000 strike S&P puts? IV blowup?
     
  5. Yes 15,000 March 2008 S&P 500 puts. (75,000 ES)
     
  6. As Deep Throat said to Woodward and Bernstein, "Follow the Money"
     
  7. ]]

    oh well. proper size and some scaling in and he would've done very well.
     
  8. AAA30

    AAA30

    deja vu....:) What year is this...
     
  9. Don't you mean August expiration? The options expiration in July was fairly uneventful and the S&P was still above 1500, I don't think even Vic could have blown up then with those 15,000 S&P 500 puts.
     
  10. 2006

    2006

    Yeah doesn't make sense. My guess the max he lost on that position is $1-1.5 Million.

    I don't know the size of the fund, but I'm guessing its not that small.
     
    #10     Sep 26, 2007