His demises collectively represent an object lesson on the dangers of hubris. Pride goeth before a fall, said Solomon. (Then again, this is a guy who married well over a hundred women, which seems a bit much considering it's enough of a challenge to deal with just one, thank you). I re-read Roger Lowenstein's book on LTCM once a year for that very reason. Brains do not necessarily translate into long-term success in this business, and the "big boys" can fall just as readily as the small fry (they just make more noise when they fall, since they're so big). These are truths that cannot be reinforced enough. Success can breed confidence, and confidence can bring forth arrogance. Everyone has it within themselves to do serious damage to their accounts.
What has this got to do with naked-put Niederhoffer? At this late stage, it's clear that the only hedging Vic employs is of the Texan and Brazilian variety.
According to the article, that money was mostly his wife's. He signed over his assets to her. She must have been some kind of burned when she found out he was noodling around with Laurel, and when LK had Vic's kid...divorce was right around the corner. Can you say liquidation? But he, somehow, talked her into staying married and "sharing" the wonderful man that is VN. The great man that lies, cheats, and wipes out investors.
Great article by the newyorker Cant wait to see part three "Return of the Neiderhoffer" May the trend be with you.....
this is funny, though its not exactly a funny event, i think the thing is N is a public figure, if he's not, it becomes just another biz venture whereby, he can just go start another fund/ biz, i'm sure most of all the traders that make it blow up at one point or another, some even a few times but if you r famous like N it becomes a lot harder b/c u got a big name to deal /w
His last kid was a selective surrogate birth. He really wanted a male heir to the code his first wife wrote for him to sell naked puts.
Time for a new term: Pulling a Neiderhoffer, for all you big-time gamblers who go ALL-IN when the trend is moving against your directional trade. :eek: JJ
the "pulling a niederhoffer" or "niederhoffering" is already discussed in "education of a speculator" although in a different context. i believe we should wait for VN to provide a statement/article of unfiltered and unhyped facts of what occured and why. It's my contention that there is much more here than meets the eye, or was discussed in the published articles. regards, surf
You must be joking. Even after the passage of so many years, his victims/ investors from last time around are still waiting for a plausible explanation of his actions. In the meantime, I guess we will just have to make do with the excellent explanation posted here by Pabst. http://www.elitetrader.com/vb/showthread.php?s=&postid=1636234#post1636234