1 reply to this topic

[dasein]

http://www.businessw...-in-london.html

really rogue or just poor management as usual, or both.

[arbman]

He probably over leveraged, lost and fled in fear as he probably thought he would be held responsible over it. The best is to tell what happened and find the best excuse to cover up the over leverage such as faulty hedging, and execution errors. Running away only makes one a criminal, the other one is just poor judgment or oversight, I've seen them getting away with it, but the money manager has to have the skills to tell a good story! Honestly, even the best control mechanism can miss a colossal mistake in hedging. It happens, I've seen in my own trading. This is the trouble with the leveraged trading and hedge funds, they make great returns when properly executed in a volatile market, but they can blow up when under hedged or over leveraged, even if the money manager does not intend to do so. You know I've seen these happening so over and over that, my conclusion is that it is the natural result as somebody must be holding the risk in the derivatives trading, they are called speculators. The stupidity is the investors expect the high returns without speculation, such a thing doesn't exist.