Eifuku Hedge Fund loses 98% capital in 7 days

Discussion in 'Trading' started by running_bare, Apr 10, 2003.

  1. At first I thought this was some kind of April Fool's joke - Eifuku sounds like "I Fuck You". LOL

    Appears the founder put most of his eggs in a less than a handful of stocks that went wrong, not to mention almost non-existent risk mangament..

    Story link:
  2. Miki


    Truly eifuked! :(
  3. Banjo


    They need a new catagory: "non hedged hedge fund"
  4. Another new category: "eternally lucky funds which suddenly failed" :eek:

    ( Eifuku means "eternal luck" in Japanese )
  5. Hey I want my money back.


    At least they named the company correctly, none of this 'long term capital' BS of a name.
  6. Eifuku, Upaimee
  7. CalTrader

    CalTrader Guest

    The Wall Street Journal has a very good story on this fellow. A bit of perspective: The description of this fellows operations and tactics matches numerous bozos that I have dealt with over the last 6 or 7 years- both in financial firms and Internet related firms running (or attempting to run) through the IPO process. Of particular note was the WSJ's description of this guys pitch to investors related to "complicated" embedded options calculations that only he and his team could comprehend, unwind, and design software to price. Another bad sign: the guy dressed in black shirts and pants to impress his audience with his technological and mathematical superiority.

    I dont know if there is a class or seminar for this type of behavioural nonsense, but this guy fit right into the mold of about 90% of the management (or other types) that I have dealt with over the last 7 years.

    Then, as now I advised people to run away or dramticaly increase their scrutiny of anyone using these types of stylized pitches with respect to business plans / raising capital.

    I think it was and continues to be good advice ....
  8. Did he also shave his head, to complete the Yul Brynner look? etc etc etc
  9. That's going way back..

    For the GenYs here take Vin Diesel as the modern day equiv to Yul Brynner, lookswise. LOL


    Points taken.
    However, just playing devil's advocate, I imagine it would be difficult to attract OPM if your pitch was along the lines of:

    "well I just use the 15 & 50 day SMA crossover method and..."

    Not defending him but there are many others like him in the industry using simple strategies but with a complex pitch IMO. Snowing them with complexity works better given that most people do not want to admit they dont understand something..
  10. ... is for the management fee I presume :)
    #10     Apr 10, 2003