Hedge fund manager's tearful video to clients "I lost all your money"
- Thread starter rafterman
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A lot of people expected oil to spike when the Iranian sanctions took effect. Problem is - Trump granted SO many exemptions that he may as well have not imposed the sanctions at all. Further - beginning in about July/August - Trump personally requested that Bin Salman exceed quota and pump about 1 million barrels/day above quota. Bin Salma did this as a favour (Trump was afraid that oil would spike - driving up pump prices, hurting the GOP for the mid-terms). So the market had more supply to cope with sanctions that were exempted so didn't happen. The final kicker was a result of Trump's idiotic trade wars. Without exception, major US companies downgraded their outlook due to trade uncertainty. This had the double whammy effect of turning market sentiment negative and focusing on other problems - debt levels, inflation, etc. So economic forecasts were downgraded thus oil demand forecasts were downgraded. THAT is why oil is in a bear market and why a lot of hedge fund managers who traded for a post-midterm bump (which never happened) got killed.
It's been a bad year in general for hedge funds.
With oil, Saudi Arabia kind of got screwed as they were counting on the Iranian sanctions to raise prices - which would have been a quick boost given their above quota production. But Trump screwed them. That might be one more reason Trump is kissing Bin Salman's ass - making up by basically pardoning the guy in direct conflict to the findings of his own CIA re: killing Khashoggi.
Oh, and if you want a classic example of Trump at his most clueless - he was bragging on twitter this morning about low oil - cheering for even lower - seemingly oblivious that if it tanks any further, some US Fracking operations will have to be temporarily shut down. The US produces more oil than they can consume but can't refine most of it because it is a lighter grade than their refineries can handle. So they need to build pipeline to port (eg Permian basin production is backlogged because of the lack of pipeline to tidewater). BUT, building the pipelines got a lot more expensive because of Trump's steel tariffs and with low oil there is even less incentive. Trump has made a mess of so many things - it's a wonder he didn't do worse in the mid-terms. I guess you can never underestimate the gullibility of the GOP voter.
At this rate, it will be a tough year for Alberta, unfortunately.
with the oil glut and USA crude premium to the CAN, dip in price was bound to happen. Apart from giving OPEC a slap on the bum, this fund manager needs a new ship
Especially when we’re only getting around $20/bbl for ours now.
We’re practically giving it away due to transport and refinery issues.
Estimates are we’re losing $80-100 million a day.
Hedge funds are a horrible idea. Way too risky and are for " sophisticated " investors dumb enough to buy in and you need tons of cash to get in. This is the laws set up by our government - think great depression- to keep the working joe out because it is so risky
These are the greedy investors that bought in thinking they could make an easy fortune then lost it all. They were rich greedy fools. Now they are just fools. I do not feel for them
These are the greedy investors that bought in thinking they could make an easy fortune then lost it all. They were rich greedy fools. Now they are just fools. I do not feel for them
I would bet top dollar he still drives his 7 Series BMW, kids still in private school, condo in Miami and flies business class. Phoney crocodile tears scum fucker!
Yup. These managers want 15% of profits plus the 3% MER of mutual funds, so they go for it knowing all they can do is win big and lose nothing but other peoples money.
Warren Buffet made a famous bet with a hedge fund manager he could outperform him in a ten year period. I think it was a cool million. Buffet won and donated his winnings
Stay the fuck away from hedge funds but suckers will continue to invest thinking they are in a rarefied investment club for the rich and can only win.
The losses from the failure of the fund could exceed US$150 million, according to Jason T. Albin, a lawyer at ChapmanAlbin LLC, who said he’s been contacted by at least 60 clients of OptionSellers. "Everybody’s account was wiped out," he said in a telephone interview.
Moreover, he said, FCStone borrowed on margin against the accounts to cover money-losing positions. In the end, the clients didn’t just lose all their all their money, they also now owe FCStone for the loans, he said.
“Natural gas is a tough market to call in the short term," he said. "Weather forecasts can bring public speculators to the market in mass, causing wild daily fluctuations, especially during the winter months. This makes pure gas futures trades risky.”
"I never invest in anything I do not understand " - Warren Buffet
Moreover, he said, FCStone borrowed on margin against the accounts to cover money-losing positions. In the end, the clients didn’t just lose all their all their money, they also now owe FCStone for the loans, he said.
“Natural gas is a tough market to call in the short term," he said. "Weather forecasts can bring public speculators to the market in mass, causing wild daily fluctuations, especially during the winter months. This makes pure gas futures trades risky.”
"I never invest in anything I do not understand " - Warren Buffet
