Hedge Fund Manager Loses 99.8% In 9 Months, Tells Investors He Is "Sorry" For "Overzealousness"

[IntoDarkness]

http://www.zerohedge.com/news/2015-...nths-tells-investors-he-sorry-overzealousness

Day after day, mainstream media proclaimed December the month to be in stocks: seasonals, Santa Claus rally, and performance-chasing funds would 'guarantee' upside. For Owen Li, former Raj Rajaratnam's Galleon Group trader, and the clients of his Canarsie Capital hedge fund, December 2014 will never be forgotten. According to CNBC, from around $100 million in AUM in March 2014, Li told investors in a letter, the fund had lost all but $200,000 and he was "truly sorry," for "acting overzealously" in the last 3 weeks.

 

[C S]

That South Park clip is a gem...

 

[Pavlos Sakoglou]

http://www.zerohedge.com/news/2015-...nths-tells-investors-he-sorry-overzealousness

Day after day, mainstream media proclaimed December the month to be in stocks: seasonals, Santa Claus rally, and performance-chasing funds would 'guarantee' upside. For Owen Li, former Raj Rajaratnam's Galleon Group trader, and the clients of his Canarsie Capital hedge fund, December 2014 will never be forgotten. According to CNBC, from around $100 million in AUM in March 2014, Li told investors in a letter, the fund had lost all but $200,000 and he was "truly sorry," for "acting overzealously" in the last 3 weeks.

dude that's horrible... how is this possible to happen?

 

[Rajan Seth]

When you make models as below

From "When Genius Failed"
The models of LTCM stated that it will take 10 sigma event for a firm to lose all the value in one year.
That will occur in 1 every 10^24 time.

And just like that, in was gone in a months duration...

 

[Alexandre Chretien]

dude that's horrible... how is this possible to happen?

Lack of hedge fund regulations.

 

[alain]

Lack of hedge fund regulations.

Why should they be regulated?