Why Madoff didn't tried a passive strategy, like buy-and-hold, covered-calls, etc?

Discussion in 'Professional Trading' started by crgarcia, Aug 3, 2009.

  1. why didn't he buy and hold treasuries?

    -b/c it was a scam
     
    #11     Aug 3, 2009
  2. Ummmmm because he was running a scam?
     
    #12     Aug 3, 2009
  3. I also don't understand his logic. He had enough money to buyout all the top quants and traders and could of made a decent return.
     
    #13     Aug 4, 2009
  4. The money with Maddoff was actually a slush fund for certain geopolitical operations. That's why they can't find almost all of it, when there should be quite a decent chunk.
     
    #14     Aug 4, 2009
  5. It appears that he lost big in with market-making strategies.

    Maybe he got scared of trading?

    In the long run, a passive strategy (maybe with some mild leverage), would pay out his customers interests.
    Altough in the short run he would need to hide losses.
    Reportedly, this is why he targeted foundations, as to avoid frequent redemptions.
     
    #15     Aug 5, 2009

  6. When will you get scared of starting these useless threads?


    :D
     
    #16     Aug 5, 2009
  7. Because he was a thief.
     
    #17     Aug 5, 2009
  8. Never, because they are NOT useles threads.

    I am the most valuable poster in ET.
    My posts warn soon-to-be traders on the low profit probabilities of short term trading.

    My posts might well save millions of dollars in losses, to ET readers.
     
    #18     Aug 5, 2009
  9. Or the most delusional?

     
    #19     Aug 5, 2009
  10. Nope, they're delusional, unobjective and one sided.
     
    #20     Aug 5, 2009