You can only lose that kind of money if you're short options and they blow up in your face. Maybe they took a shot and sold upside VIX calls thinking they were protected with their long VIX position, which was the hedge against their long index/equity position. The unimaginable losses on the VIX call options would have overwhelmed the whole position.
They already auctioned-off Ronin's positions: https://www.reuters.com/article/cme...-firm-ronin-capitals-portfolios-idUSL1N2BD2GF
Looks like 90% of Parplus Partners capital was Ronin/Stafford's. So Ronin may have lost $100M+. Ownership team - last updated 2019-03-29 Name Title Start Date Direct/Indirect % Ownership Stanton, John, Cressy CCO 02/01/2017 Direct less than 5% CARNEY, JAMES, W CEO 02/01/2017 Direct less than 5% PARPLUS PARTNERS HOLDINGS LP MEMBER AND MANAGER 02/01/2017 Direct 75% or more WAIZU HOLDINGS MEMEBER RONIN PRIVATE INVESTMENTS , LLC 12/01/2015 Indirect 75% or more STAFFORD, JOHN, SPRINGS MEMBER WAIZU HOLDING LLC 12/01/2015 Indirect 25 - 50% STAFFORD, JOHN, SPRINGS MEMBER WAIZU HOLDINGS LLC 12/01/2015 Indirect 25 - 50% SOLLOG, ADDISON, MILES LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50% CARNEY, JAMES, W LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50% RONIN PRIVATE INVESTMENTS., LLC LIMITED PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect 25 - 50% PARPLUS PARTNERS HOLDINGS GP LLC GENERAL PARTNER PARPLUS PARTNERS HOLDINGS LP 04/01/2017 Indirect Other CARNEY, JAMES, W MEMBER AND MANAGER PARPLUS PARTNERS HOLDINGS GP LLC 04/01/2017 Indirect 75% or more https://whalewisdom.com/filer/parplus-partners#tabadv_ownership_tab_link
Maybe they made an error and placed an incorrect trade, in the heat of the moment there was a lapse in covering or a type fat finger trade which went undetected.
A Hedge Fund CEO Bragged About Not Taking Management Fees. He Was Right — Sort of. Amid record volatility, Parplus Partners closes down after losses.
I just signed up to ET this afternoon. Was at Ronin for over eleven years till mid 2011. Obviously a few of you were at Ronin or knew/know 3 pencil. Before that I was at two other trading firms that blew- Linnco, than Refco, which is how I ended up at Ronin Don't know how much I can add other than in these situations, generally none of the traders are made whole. The Staffords have a ton of money outside of Ronin, and if they had wanted could probably have found a way to meet the margin call, so I'm guessing they decided to let the ship sink. Anyone that wants to chat can pm me.
I meant 3 stick. John the third. I remember seeing your profile before it think you deleted and recollect you using Carmel as your addy. Do you know him from the car world or from trading? I