1997-2007 In 1997, Niederhoffer Investments was not finding many opportunities for investment, and having returned much of its funds to customers such as George Soros, began investing the remaining 100 million dollars in areas where Niederhoffer later admitted that he did not have much expertise. [2] Niederhoffer decided to buy Thai bank stocks, which had fallen heavily in the Asian financial crisis, his bet was that the Thai government would not allow these companies to go out of business. On October 27, 1997, losses resulting from this investment, combined with a 554 point (7.2%) single day decline in the Dow Jones Industrial Average (the largest point decline to date in index history, though not the largest percent decline) forced Niederhoffer Investments to close its doors. In a lawsuit Niederhoffer later filed in the U.S. District Court for the Northern District of Illinois against the Chicago Mercantile Exchange, where he traded options, he alleged that floor traders colluded to drive the market down that day to force him out of his positions. Traders at the time said Refco may have been responsible for as much as $35 million of Niederhoffer's losses.[3] ... [Here comes 2007, again he isn't interested in trading any more, then blow up follows:] Victor Niederhoffer is famous for hiring young and extremely bright traders, whom he mentors. He encourages them to develop their own trading strategies, and runs his firm more like a science lab than a traditional trading firm. In January 2007, Victor turned over most of the day to day trading at Niederhoffer Investments to his Partner Steve Wisdom, who has worked with him for 15 years. While he is still involved in the business he now devotes most of his time to his children, and reading..[7]
this is why one needs to be an accredited, sophisticated investor to use hedge funds as investment vehicles. one is suppose to be well aware of the risks involved. in this case, the investors are exceedingly knowledgeable and willing/wanting to accept risk. if you can't lose the money, stay away from risky investments, that's the bottom line. surf surf
Bloomberg is working on the story, as I posted in a related thread. EHT reporter is Peter Robison. He is looking for information, thoughts, comments. E-mail him at robison@bloomberg.com
It is disturbing. Putting two and two together one can figure out what has happened pretty quickly. And so the question remains, why bring it up in this context unless the person who brought it up wants to offer a smoke screen to take the focus off Neiderhoffer. On the topic, Neiderhoffer was and has always been in my opinion, quick to risk his client's money with little or no real concern for his obligation to manage risk. Why? You already know the answer. Clients are cannon fodder for "Mr." Neiderhoffer. He figured (accurately) that the bigger fool would always be there (at least one more time) willing to put money in his hands. Some might say they (fund subscribers) derserved it, as they were equally if not more greedy and ambititious than Neiderhoffer. I would say that is an accurate although not very flattering assessment. Of course this and all my previous comments are just my opinion. Interesting that this prompts the aliases (guess who's) and mental defectives to come out of the woodwork on behalf of this person.
Sounds like you're on the road to learning the difference between an equity investment and a loan. OldTrader
so did VN blow up? incidentally i can never pronounce his surname the N..., who tf have surnames like that?
I thought about the situation and I think I can make a payback to ET for the opportunity I have had here. Times do change as is stated. I want to thank nokhoi for inviting me here It was a good idea in those days. Spyder has been paying it forward here for years now. There is no way to express my appreciation for his accomplishing all the things he has for the benefit of others and for so long. I believe my presence here is outweighed by the trouble it causes Baron Robertson and his business pursuits. My thanks to all the people who engaged with me on their pursuits and my pool extraction interests as depicted by the PVT, Sector Rotation and SCT. I'm shutting down my membership in ET now.
You already got my hopes up here. What happened? http://www.elitetrader.com/vb/showthread.php?s=&threadid=105079