LOL! LMHO! Hilarious! How can people be so gullible? It's extraordinary ... can a fool and his money be so easily parted?
hiliarious. The good news is that whilst our NAV is obviously impacted to the low side by this, the Fund continues to do business as usual. The liquidity position of the Fund is strong with in excess of USD 40 million in cash and since the remaining physical book is very profitable going forward, we view the future with confidence (this confidence is being justified by our March month-to-date result which is showing a plus of more than +10 pct at the time of writing). _________________ sell to whom? http://www.opalesque.com/Commodities_Briefing/?p=105624
oh oh, looks like they lied to investors too: http://www.businessweek.com/news/20...e-fund-says-january-loss-was-70-not-1-1-.html
guys this is not as bad as it seems: "The monumental losses are certainly new for Ebullio, which debuted in 2008 with US$4 million. The firm soared 92% its first year and returned another 29% last year, before giving it all back and more over the last two months." http://www.finalternatives.com/node/11790
I think making 90% doesn't offset the loss they had with the 90%+ loss. The 90%+ loss actually wiped out the initial capitial if you do the math right. It is as bad as it seems.
Blowup? I'd consider -25% trading futures to be a blowup. Losing -95% is actually hard to do trading futures due to margin calls. Once your basis goes below you maintenance margin you get liquidated unless you post collateral. These guys were doing something seriously wrong and it had nothing to do with "being dealt a bad hand". Perhaps they were long a bunch of puts that expired worthless, or short base metal calls.