They probably also had all upper scale brothels worldwide at their fingertips during their 'research travels'. Imagine the wealth of information (and entertainment)
well, when you're dealing in the size of LTCM, you tend to go through certain brokers. and they KNOW your positions when you're the big dog. now, when you start going against those positions, what do they do? they bet against you...and tell their friends....and so on, and so on, and so on.
Last time I looked when commodities prices go down so do the stocks associated with the commodities. Oil goes down, exxon goes down, gold goes down, barrick goes down. So yes it is possible that the indexes were impacted today, since I am sure he was selling before tonights anouncement. He lost 28% in Aug, so I would assume that the fund was leveraged and the assets to sell are much more than the 2.8b in the fund...
http://www.sec.gov/Archives/edgar/data/1326533/000095015908001228/0000950159-08-001228.txt Ok, so losing 38% on $995 million in equities does not lead to a 38% drawdown on $9 billion.... Just to clarify...
yep. XLE is up 12% on the year, XLB is flat. CRB is also more or less flat year to date, that suggests leverage at exactly the wrong time ignoring recession concerns.
Hmm seems those numbers at Yahoo are wrong, e.g. XLE closed Dec 31 at 79.35 and closed Sept 2nd at 70.55, approx. -11%. Even if you factor in dividends it doesn't make much difference. Wonder how Yahoo derives its numbers.