"They were charging exorbitant fees..." That will be an interesting figure that will be eventually revealed...What would be considered an "exorbitant" fee? Geez, as evidenced by this thread, we're worse than the weekly gossip at the knitting circle. Teehee?
No ultimately what killed him was the over-leverage. If you look at the spreadsheet for the calls he shorted, you will see. According to a chart that was posted in this thread yesterday, NG has been rising in value but it was not until Nov. and just in 2 days but actually in ONE day, that the price rose significantly above some of his strikes. And to be fair, half of his strikes were still OTM from the NG prices despite the huge price spike so if he didn't borrow that much to short and short that much(I bet you he was also the IB to FC Stone so he was making commissions for FC Stone and getting kickbacks.), the losses from those half of those OTM strikes might have been manageable. He would've still suffered losses on the ITM and the ATM calls but it might, just might not be a total wipe-out! Plus he actually made money on the OTM puts which we all didn't realize from the worksheet for the puts. That worksheet still put negative numbers even for profit and that was not correct. https://slopeofhope.com/wp-content/uploads/2018/11/Calls-1.png https://slopeofhope.com/wp-content/uploads/2018/11/Puts.png And FC Stone really shouldn't have borrowed to cover the positions. I mean like I said if those positions were expiring then yeah it would be worth it to borrow to cover just until they expire worthless but those options had at least 3 more months to go, it was obvious borrowing to cover such huge margin was not worth it. They should've just auto-liquidated the positions lot sooner and that way the clients might not have been stuck with the debit balances.
$50K per account for management fee. And in some other articles I have read, the fee went up to $90K. Did you read the article that I just posted? The guy just bought a bayfront Appollo beach beachhouse last year for $1.6 million. We are going to milk it as long as we can. LOL Entertainment like this doesn't come along often.
Yes, that is the article I just quoted about 30 minutes ago? I didn't realize the numbers. So a $50K management fee, that is per year?
So basically, Cordier is this guy, thanks to his fees and all the other money he siphoned away from his clients by illegally promoting a fund which was not a hedge fund?
He wasn't promoting a fund!!!! There was no fund!!! He was just trading all of his clients individually!! The clients' money was not pooled. Each individual client had their individual account with FC Stone. Well he was probably personally trading all of the platinum club accounts which was at least $10 million and the rest of his team were trading the rest.
Is that commission per contract regardless of the trade amount or does it change according to trade amount? What about management fees?
If you tell people you have a hedge fund and tell people to invest in the hedge fund because he has the edge and hedges said edge, isn't it a hedge fund through promotion? After all, he's hedged, right? Or am I missing some humor here. Sorry, feeling weary. Is it time for my meds?