LJM Preservation and Growth Fund, collapsed by 82 percent! (WTF?)

Discussion in 'Wall St. News' started by prc117f, Feb 8, 2018.

  1. Hmm I remember in one of the market wizard books were a trader talked about how he opened a fund called LS. It originally stood for Larry Shag (spelling?) which was a term they had in the city he was from of a person who was a bit of a gambler or a 'gunslinger'.

    Later he told his clients it stood for long short instead, as he was afraid the actual meaning would scare clients away.
     
    #11     Feb 9, 2018
  2. "Preservation" 18% of capital
     
    #12     Feb 9, 2018
  3. zdreg

    zdreg

    that was the attraction of the Madoff scam. it was the sales pitch of a moderate consistent profit of 12% per year.
     
    #13     Feb 9, 2018
    d08 likes this.
  4. newwurldmn

    newwurldmn

    #14     Feb 9, 2018
  5. jharmon

    jharmon

     
    #15     Feb 9, 2018
  6. d08

    d08

    I'll try again.
    Maybe I'll Make a Moderate Inconsistent Profit With High Volatility But Most Probably Will Go Bust Capital Management.
     
    #16     Feb 9, 2018
    zdreg likes this.
  7. ironchef

    ironchef

    Minimum investment: $3M, so their investors are not mom and pop and supposed to be well heeled.

    Maybe they got careless after all those years of gain betting on low volatility and forgot to hedge this one time? However, they are not hurting collecting 3.3% fee. Poor investors though.:vomit:
     
    #17     Feb 9, 2018
  8. RedDuke

    RedDuke

    Here is a bit more info:
    https://www.zerohedge.com/news/2018-02-07/vol-selling-fund-disintegrates-down-80-2-days

    The question is were they liquidated? If not, a big chunk of that loss was erased during Tuesday rally.

    What happened on Monday night was a lot worse than 2008 (from options pricing perspective). Just 1 example, February Week2 1550 puts (1000 points away from the market) were trading at 9 points. This was pure madness.

    The rumor is that ETNs liquidations like XIV were part of the root cause.
     
    #18     Feb 9, 2018
  9. Funds should be named after the founders to keep it simple.

    Ben Dover fund would be appropriate.
     
    #19     Feb 9, 2018
  10. Maverick74

    Maverick74

    #20     Feb 9, 2018