We know its been a disaster for Thiel. I heard somwhere that the guy from GS, I think his name was Silva, has not done well and did some reorganization in his fund. Andersen closed down his fund after major losses. Who the hell knows how Jim Rogers did? That's 4 off the top of my head.
Well, apparently the 2nd edition of the Inside of the House there are some updates and a chapter on the crisis
Thats interesting given that he was a 'go dove on dislocation guy'. Did he blew up being long eurodollars when the libor-OIS went to the sky?
Yes, if I remember correctly... My understanding is that it was a case of monumental hubris, where he simply refused to admit that his understanding of the situation was wrong. I guess he considered himself to be one of the Masters of the Universe and, thus, infallible.
If you're thinking of stepping in and adding to GE longs, it looks like the market is beginning to give you a great opportunity.
If he read this journal he would have been long ZQ instead. Its funny that he was the guy that I originally got the idea of going dove due the view of a weak US economy. I expressed the trade via NLY stock(in 2007/early 2008), got hurt there when FNM and FRE went into trouble(NLY dived). Then I decided to go pure fed policy and that meant ZQ from Sep 2008 and on. Now I opened an exception with the GE calls but I'm not entirely comfortable with them. Watching my libor-OIS stop. But its a shame, I admired the dude
I dont know. Sounds crazy but I got 15% of my networth on those calls already(originally it wasnt that much, its because its mostly profit), I should probably trimm down my position instead of adding. If they were ZQ calls I could make the case of adding and going Soros on them but I dont have a clue what the libor-OIS will do if the market dives hard or the banks go back to struggle
You missed your time for trimming. Prices are off by 30%. You could probably hedge the libor/ois blowout risk by shorting the front month eurodollar contract, or buying OTM puts on it. The Dec calls are trading at levels seen back around Thanksgiving. I think the 'rate hike scare' will stay in the air a few more weeks, so I'm in no rush to add this morning. If Dec falls to $0.25, I probably won't be able to help myself.