It looks like they were heavily short all of these non-ferrous metals? But seriously, how out of whack are your options hedge versus your level of leverage, for you to have this kind of a loss... while the options hedge only kicked in +5%?
Pro's smoe's, the "pro's" blew up the whole god damn economy. Once again, the suits leave me less than impressed. That's other than their ability to convince people to give them money over and over and over and over and over again...now that's impressive.
Could this be the problem?? http://uk.reuters.com/article/idUKL955173820091009?pageNumber=2&virtualBrandChannel=0&sp=true "Ebullio fund controls over 90 pct of LME tin -trade"
Does the LME not have position limits? What about the LIFFE? This is news to me. I had no idea the UK was so loose on this issue.
No clue either, just caught my attention when researching what happened. Ultimate liquidity trap, especailly when looking at tin chart for past 3 months.
Something seriously broke down here. If I was an investor in the fund, I wouldn't be satisfied with the explanation in this newsletter. http://www.ebullio.co.uk/thecommodityfund.html "The objective for the margin to equity ratio is no greater than 20% on a portfolio level and no greater than 10% in any single commodity."