What does Karen the Supertrader and her results say about volatility? Oversold?

Discussion in 'Options' started by shooter, Feb 16, 2014.

  1. jamesbp

    jamesbp

    When did she go pro?
     
    #281     Mar 30, 2014
  2. newwurldmn

    newwurldmn

    And maybe he doesn't have to pay it back!
     
    #282     Mar 30, 2014
  3. Pekelo

    Pekelo

    If by pro we mean trading other people's money, even if they are friends and family, then in 2008 she was already doing that, in the 700-800K range if I recall correctly...
     
    #283     Mar 30, 2014
  4. Surprise

    Surprise

    Again its all based on interviews and hearsay , that's not a proof , you need a verified audited track record by a third party period , other than that we don't have any proof if she even have made a dime in her whole life , that's how the industry works .
     
    #284     Mar 30, 2014
  5. peleus

    peleus

    Is she still doing this kind of output for this year? Is there also a chance for use to have her as a signal provider? [​IMG]
     
    #285     Apr 1, 2014
  6. newwurldmn

    newwurldmn

    Marty,

    I've been thinking about this a bit recently.
    If you ran a short downside put book (any any format you choose: hedged, outright, spreaded, skew, whatever) under the one constraint that you can't lose more than 10% on a 10% shock, how much pnl can you reasonably make?

    I get 5-7%ish: Underperforming historical long-only performance.
     
    #286     Apr 2, 2014
  7. We should ask sle for a confirmation of your estimate...

    Personally, my guide has always been LJM. If you look at the history of their returns (http://www.ljmpartners.com/performance-history), it's pretty useful. Specifically, if we use the constraint that you have specified, it rules out both their "Aggressive" and "Moderately Aggressive" strategies, which leaves you with the "Preservation & Growth" as the only option. That seems to have produced a historical return of 8.6% per annum, so your estimate isn't that far off. Obviously, 8.6% still beats Spooz and all the caveats apply.
     
    #287     Apr 2, 2014
  8. Pekelo

    Pekelo

    You misunderstood something. The 800K was her AUM around 2008. And no, HF managers can't provide signals, and most likely you don't have portfolio margin anyway.
     
    #288     Apr 2, 2014
  9. newwurldmn

    newwurldmn

    Maybe I am wrong in having this view, but I consider the LJM guys to be pretty smart.

    They outperformed the SPTR by about 1%/year. That's pretty good.

    Too lazy to calculate if their sharpe is in line with the SPX over the same period, but their sharpe is inline with the long run average of the SPX.
     
    #289     Apr 2, 2014
  10. Yeah, I agree, they appear to be reasonably smart and, more importantly, straightforward... I don't imagine, though, that there's some sort of super special secret sauce that they offer that a clever long-only shop couldn't reproduce, if they wanted to.

    The other question, of course, is the mandates.
     
    #290     Apr 2, 2014