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Author Topic: Hedge fund manager jailed for 13 years  (Read 6554 times)
denarii
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« on: January 23, 2015, 01:21:27 PM »

http://www.dailymail.co.uk/news/article-2923980/Hedge-fund-boss-cost-investors-350MILLION-Mayfair-based-firm-collapsed-rogue-trading-jailed-13-years.html

Hedge fund boss who cost investors 350MILLION when his Mayfair-based firm collapsed due to his rogue trading is jailed for 13 years

    Magnus Peterson was jailed in one of the first prosecutions of 2008 crash
    From 2003, he used one company to mask flailing accounts of another
    Swedish born Peterson then launched Ponzi-like scheme amid 2008 crisis
    He used fresh investments from 'pensioners' to repay out-of-pocket clients
    In 2009 he was arrested by Serious Fraud Office but charges were dropped
    A 2012 High Court case launched by creditors saw financier bankrupted
    Criminal case was reopened as a result and Peterson found guilty of fraud

-----

I never met Magnus P, he had blown up in Sweden prior to relocating to London... hardly a promising sign. I had met his side kick, Chas Dabhia a few times though. The courts found Chas to be a gullible idiot and not at fault.

The SFO at first declined to prosecute this saying the crimes were committed in the Caymans


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bigmc
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« Reply #1 on: January 24, 2015, 02:20:29 AM »

hedge funds are legal deceptions

its manipulation of imaginary money

to benefit the few
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denarii
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« Reply #2 on: January 24, 2015, 02:57:11 AM »

....


 



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bigmc
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« Reply #3 on: January 24, 2015, 04:37:10 AM »

its a virtual world

built on a foundation of glass

the cracks are showing again

another crash will happen

and ordinary people will be left to foot the bill for a bunch of idiots gambling

obcene amounts of virtual money

so penelope can have a pony for her sixteenth birthday
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pedro01
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Hello Hunior


« Reply #4 on: January 24, 2015, 05:01:21 AM »

hedge funds are legal deceptions

its manipulation of imaginary money

to benefit the few

Nope.

A hedge fund is a legal construct. It's a bit like a mutual fund but without a lot of the restrictions that come with it.

So saying they are legal deceptions is like saying "a Ltd Company is a legal deceptions" - it's just a vehicle.

A hedge fund can be implementing almost any investment style. They simply take people's money and invest it.
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pedro01
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Hello Hunior


« Reply #5 on: January 24, 2015, 05:02:24 AM »

its a virtual world

built on a foundation of glass

the cracks are showing again

another crash will happen

and ordinary people will be left to foot the bill for a bunch of idiots gambling

obcene amounts of virtual money

so penelope can have a pony for her sixteenth birthday

How will ordinary people pay for hedge fund losses exactly?
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bigmc
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« Reply #6 on: January 24, 2015, 05:03:39 AM »

Nope.

A hedge fund is a legal construct. It's a bit like a mutual fund but without a lot of the restrictions that come with it.

So saying they are legal deceptions is like saying "a Ltd Company is a legal deceptions" - it's just a vehicle.

A hedge fund can be implementing almost any investment style. They simply take people's money and invest it.

i appreciate the term is simplistic

let me put it this way

an economy built on virtual money

in a market manipulated by greed to benefit the few

will always come crashing down

and everyone pays

not just the idiots who fuck it up
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bigmc
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« Reply #7 on: January 24, 2015, 05:04:31 AM »

How will ordinary people pay for hedge fund losses exactly?


through the ecomony being fucked up

taxes being raised

govt money being used t plug gaps created through massive losses

etc
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bigmc
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« Reply #8 on: January 24, 2015, 05:06:31 AM »

hedge fund



noun

noun: hedge fund; plural noun: hedge funds




an offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.

that capital comes from somewhere and has to be be paid back
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denarii
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« Reply #9 on: January 24, 2015, 05:57:28 AM »

hedge fund



noun

noun: hedge fund; plural noun: hedge funds




an offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.

that capital comes from somewhere and has to be be paid back


Mike platt said that it is investors who are the biggest speculators of them all.

The entire system has been inflated and rigged by the central banks. Hedge funds are just small but players in a much bigger global fiat money system. And yes the next crisis will make 08 look like an amuse Bouche. The next crisis will probably be inflationary though.
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pedro01
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Hello Hunior


« Reply #10 on: January 24, 2015, 07:12:11 AM »

hedge fund



noun

noun: hedge fund; plural noun: hedge funds




an offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.

that capital comes from somewhere and has to be be paid back


That's a bullshit description I'm afraid.

You think hedge funds run on 100% borrowed money? How exactly would they have the collateral to borrow the money? They get money from investors hoping to get a high return and of course they use leverage. Those investors get paid when the fund performs well and the Hedge Fund themselves get paid a percentage of the gains.

Almost all investment is leveraged. There is nothing wrong with leverage. Every business on the planet uses credit and a huge percentage use borrowed capital. I presume you don't use a credit card as leverage is so bad. I presume you also didn't borrow money to buy your house.

The very nature of a futures trade is that it's leveraged. You can't even buy un-leveraged futures contracts. You think Kellogs are evil for buying Corn Futures? Or that farmers are evil for selling them?

Honestly - you really don't understand what you are talking about. Hedge funds cover a massive range of investment strategies but what makes a hedge fund a hedge fund is the way they get paid and the regulations they have to comply with.
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bigmc
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« Reply #11 on: January 24, 2015, 08:21:15 AM »

That's a bullshit description I'm afraid.

You think hedge funds run on 100% borrowed money? How exactly would they have the collateral to borrow the money? They get money from investors hoping to get a high return and of course they use leverage. Those investors get paid when the fund performs well and the Hedge Fund themselves get paid a percentage of the gains.

Almost all investment is leveraged. There is nothing wrong with leverage. Every business on the planet uses credit and a huge percentage use borrowed capital. I presume you don't use a credit card as leverage is so bad. I presume you also didn't borrow money to buy your house.

The very nature of a futures trade is that it's leveraged. You can't even buy un-leveraged futures contracts. You think Kellogs are evil for buying Corn Futures? Or that farmers are evil for selling them?

Honestly - you really don't understand what you are talking about. Hedge funds cover a massive range of investment strategies but what makes a hedge fund a hedge fund is the way they get paid and the regulations they have to comply with.

no i dont hence the debate im trying to educate myself

and reading your posts accordingly

thanks for your input  Smiley
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bigmc
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« Reply #12 on: January 24, 2015, 10:26:46 AM »

just to qualify

i was putting a laymens argument forward here based on what ive seen in the media

i accept that people involved in this business are smart and savvy and not all crooks

my perception is based on an over reliance in the uk on financial services and markets

which are subject to wild fluctuations and can go south very quickly
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denarii
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« Reply #13 on: January 24, 2015, 10:49:07 AM »

Finance is no more volatile than mineral extraction or manufacturing.

Banks are supposed to be utilities, intermediate savers with legit borrowers.

But the central banks have inflated a 30 year credit super cycle. Zero rates and we have not stopped debt growing faster than gdp in most economies. Watch max keister for a rolling commentary on it.

Re hedge funds 'in search of alpha' by Alex Ineichen Is a basic overview of them.
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bigmc
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« Reply #14 on: January 24, 2015, 12:27:32 PM »

Finance is no more volatile than mineral extraction or manufacturing.

Banks are supposed to be utilities, intermediate savers with legit borrowers.

But the central banks have inflated a 30 year credit super cycle. Zero rates and we have not stopped debt growing faster than gdp in most economies. Watch max keister for a rolling commentary on it.

Re hedge funds 'in search of alpha' by Alex Ineichen Is a basic overview of them.

thanks il look it up
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denarii
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« Reply #15 on: January 26, 2016, 06:34:15 AM »

...
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