I really don't like this guy, seriously he's a shark (he's probably right, but what a jerk): "If you know somebody has to liquidate, the best thing you have to do, unfortunately, sadly, Darwinian is to go sell all the positions you have in common, then start shorting everything they have. It accelerates the downfall as quickly as you can." of course then he says 'It's nothing I would ever do...'

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infecto 5 hours ago | parent [-]

That’s truly the playbook when you are on the other side of a levered firm though.

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loco5niner 5 hours ago | parent [-]

Yeah, probably. Its too bad.

	▲	ymolodtsov 5 hours ago \| parent \| next [-]
		If there's any purpose in hedge funds as a structure it's that they provide liquidity for the market. So it's in everyone's best interest to let them do price discovery against each other.
	▲	infecto 5 hours ago \| parent \| prev \| next [-]
		Why too bad? This is how the market ultimately comes to the right price.
	▲	literalAardvark 5 hours ago \| parent \| prev \| next [-]
		Not really. Using leverage has risks that you're supposed to understand before you do it. It's not a free lunch, unless you're putting the sharks' interest ahead of yours. Or clueless, which was the case here, as L.A. is not a trader and has no business running a fund.
	▲	quickthrowman 4 hours ago \| parent \| prev [-]
		Too bad for the people that were overleveraged? I don’t see why, they assumed too much risk and lost. This isn’t a WSB guy blowing up, it’s a collection of capital from sophisticated investors that understand the risks.