Ping!
I shed a tear.
If you humble yourself to the market, it will exault you. If you exault yourself to the market, it will humble you.
Next week is “statement shock” week. Their quarterly charges plus piss poor performance might be a perfect storm climaxing in stupid selling. So sharpen your pencils and know good stocks will be cheap for no good reason.
I thought hedge funds would be hedging against the future no matter which way things went.
Someone with plenty of skill and knowledge about investments may be able to clarify this - but I think only a select group of people can invest in a hedge fund. These people are very rich and their investment would be a tiny portion of all they have at risk or they are fools for taking too big a protion of their money and putting it in a hedge fund. So if the hedge funds die - only the gamblers will be hurt. If banks are putting money there that is not even remotely wise... their money is little old lady money and should never ever ever be at risk.
I am a portfolio manager for a hedge fund in Chicago, so I’ll give an insider’s view on Ospraie: A number of weeks before Ospraie went under, the CFTC issued a statement that a large player with huge positions had its commercial status revoked in a number of commodities. What this means is that the firm had the status that its actions in the futures market were to hedge its exposures as a commodities producer or processor. This would allow it to get around the legal position limits.
The rumor going around in some circles in the market is that firm was Ospraie. They had to liquidate their huge commodities positions, and since the market couldn’t absorb such a huge liquidation, the prices tanked and Ospraie got killed.