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BubbleVision
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Joined: 05/Aug/2006
Location: India
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Posts: 3142
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   Posted: 18/Sep/2006 at 11:38am |
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 18/Sep/2006 at 11:49am |
Amaranth Advisors LLC, a hedge-fund manager with $9.5 billion in assets, warned investors that its two main funds fell almost 50 percent this month because of a plunge in natural-gas prices
A convertible-bond specialist who worked at Paloma for 10 years, Maounis started Amaranth with 27 investment professionals and about $450 million in assets. The firm's initial strategies included trading convertible bonds and the stocks of merging companies.
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Great link Bubble. All I can repeat is
" Markets can be irrational longer then you can stay solvent" - JM Keynes.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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reetesh
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Joined: 01/Sep/2006
Location: India
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Posts: 793
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Posted: 19/Sep/2006 at 12:04pm |
" Markets can be irrational longer then you can stay solvent"
Sir, this can be used both ways and it is being used both ways in our market.. This is a political kind of quote..
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When going gets tough, that’s when tough (people) gets going.
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basant
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Posted: 19/Sep/2006 at 12:19pm |
Depends on what trade you are in. If you are short in a bull market or long in a bear one. Quote reinforces the principle that while the normal would happen you would not live to see it so it is better to follow the market rather the try and predict the change in course..
There is a book titled " When genius failed" try reading the summary or the whole book it talks about how a few Noble prize winners made their way into bankruptcy just becauise the market refused to revert back to the mean.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 19/Sep/2006 at 12:55pm |
All the fund managers of Amaranth & their broke clients need to go on a pilgrimage to Baba Amarnath!
No wonder derivatives are called weapons of mass destruction!
Basantjee, the quote: "Markets can be irrational longer then you can stay solvent" - JM Keynes is applicable for people who are leveraged, gambling aimlessly on margin money...right?
Edited by kulman - 19/Sep/2006 at 1:04pm
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Life can only be understood backwards—but it must be lived forwards
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
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Posts: 3142
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Posted: 19/Sep/2006 at 1:20pm |
And Hopefully NOT to someone like me who uses them RATIONALLY.
The important Thing was that they were trying to capture a spread profit.. when it continued to go wild. "Natural Gas" is natuarally very risky.
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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reetesh
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Joined: 01/Sep/2006
Location: India
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Posts: 793
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Posted: 19/Sep/2006 at 1:06am |
See height of speculation unwind their position and run for cover.... 5 year bull market is over in Crude and at best it just might challange $77 in next one year or so and will be in range of $50 to $77...
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When going gets tough, that’s when tough (people) gets going.
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
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Posts: 3142
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Posted: 20/Sep/2006 at 7:03pm |
I got a news just now.... This could be a Rumour...
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Steve A Cohen of SAC Capital (interview in MKT WZDS), holds big long positions in Crude taken above $73.00.. which could be another Amaranth in the making....He was the the second most profitable trader in the world last year when he made $1.5 Bln
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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