Pretty Simple Shorted a boatload of puts. Market got crushed. He got crushed. He whined about the exchange fucking him again. Seems to be his playbook.
why, we already have his word, from baron: <i>I have corresponded with reps from Manchester Trading and Matador, including Victor Niederhoffer himself, and they all say that the speculations posted in the previous thread regarding Matador's positions and liquidations, are completely false. Furthermore, Victor said "Matador is very much viable. Has much cash and positions in excess of all requirements. And has no need to liquidate positions."</I> http://www.elitetrader.com/vb/showthread.php?s=&threadid=102468
Maybe the term: "Pulling a Neiderhoffer" would also imply an element of denial/obfuscation after the blow-up, such as provided by marketsurfer and VN himself.
are we not understanding english here?? an "unfiltered" statement from VN himself, not this hype stuff designed to sell papers/magazines. not second hand information, he said, she said material. got it??? surf
Furthermore, Victor said "Matador is very much viable. Has much cash and positions in excess of all requirements. And has no need to liquidate positions."
I think you are 100% correct surf. The only issue is did he step outside his stated risk parameters. If, and that is a big if since I don't know, this is the business plan that VN told his investors he would be implementing, then how can anyone complain when he blows up? So, these people were told that VN sells unhedged far OTM put-wings, and then ontop of it buys futures, they make $millions for years, and then one day he implodes? nitro
But what if that is what he sold his investors? Did they really just write him a blank check and say do whatever you want? No business plan? nitro
thanks, nitro. vn has a team of very skilled traders/managers who work with him---i don't believe this was a risk management oversight--makes no sense. its my guess that the unexpected and unfair changes in margin, when the positions were open, precipatated the situation. in addition, there is some talk of a cabal on the exchange to give unfair marks. once again, i have no facts, these are just rumours floating about. remember, VN is paid to earn outsized returns with very very large capital base. it makes sense that there are many people who have an agenda on the other side of these trades that have won for years...... surf