The lesson here... Is to apply critical analysis to Monster Ego Celebrity Traders. Instead of writing... Ego driven tomes about himself that are devoid of useful facts... Victor should have learned how to hedge a Portfolio 40 years ago. I'm being very serious here: For reckless money management... As a multi-repeat offender in terms of FLOUTING his fiduciary responsibilities... Niederhoffer should be facing criminal charges. He gives the hedge fund business a bad name... And I guarentee you that after 5 years as a guest of the State of New York... Victor would have respect for his investors.
investors knew what they getting into when they invested with neiderhoffer. he has a documented track record and a trove of newspaper clips. it is like being a silent partner in an restaurant or in theatrical production. it is done for bragging rights. you have become a member of an exclusive club. there is not a chance he will ever be convicted of criminal charges.
yes. if you want big returns, one MUST take big risks. these investors( as all hedge fund investors must be) are sophisticated and understand the risks. Particullarly in this case--ultra sophisticated investor base. there are perhaps 3 people on earth who can earn outsized returns quickly, on this capital size, without apparently taking huge risk. i say apparently as no one really knows the risks taken, just that longevity seems to indicate the above. this talk of punishment etc shows the ignorance of many here. surf
Yea, but it went back up in September. Why can't they just give him a pass - let it be a wash. I mean, he's Vic Neiderhoffer!
You are right... no chance. But his behavior is unethical and irresponsible... And the fact that he is a serial offender in this regard... Should be the basis for a civil lawsuit. He does not even have the most rudimentary risk engineering in place... Because going BUST every 5 years... Is not usually considered a viable option. It pisses me off... Because I would never screw my investors like this... It would be UNTHINKABLE... But for Victor it's a way of life.
I can understand the allure of seeing that $25 million credit hit the run, but how many times must he blowup to understand it's not a viable strategy? These things aren't binary, and they're marked to market.