Clark, Stitch,
"You are living in the vortex of interesting times my boy."
Remember the Chinese (some say the Swiss) curse: "May you live interesting times."
Here is link from Worswick's derivatives thread that should be of interest to people here as well, for those who don't read the other. On John Merryweather's[sic<g>] extensive hedge fund losses:
exchange2000.com
Excerpts:
<<"We expected that sooner or later that this good fortune could not continue uninterrupted and that we as a firm would be tested," Meriwether told investors. "I did not anticipate, however, how severe the test would be.">>
<<Meriwether also emphasized that the fund believes that the current market environment is "unusually attractive." Since the fund has not bailed out of many of its positions, it could profit handsomely if its bets end up proving right in the longer term. The fund is now raising additional capital, according to the letter.
As Meriwether was also quick to point out in his letter to investors, Long-Term Capital is hardly alone in its suffering: "Investment funds widely, many Wall Street firms, and money-center banks have reported large trading losses with resulting sharp declines in their share prices."
Several large and high-profile hedge funds, including George Soros' Quantum Fund and Leon Cooperman's Omega Advisors, have publicly acknowledged losses from exposure to the Russian markets. Soros' fund, for example, said it had lost $2 billion through its investments there.
"There is a lot of blood in the streets," said James R. Hedges 4th [yes, that is apparently his real name; think his family owns a seat or two on NYSE?], the president of LJH Alternative Investment Advisors in Naples, Fla.>>
No kidding. |
