Once again, I’m not asking for myself, I’m asking for Ebullio Capital Management, and its founder, Lars Steffensen. For those of you who haven’t been keeping up on your ass-bleeding news, Lars’ commodities fund lost 86 percent in February, after declining 70 percent in January, and YTD, is down 96 percent. He mentioned this to investors the other day, while also noting that the losses? While seemingly sack-rippingly bad? They are but a blip. Lars has seen worse, way worse, and he’s always “bounced back.” He also made a case for why you should stick with him, despite the fact that “Sac ripping,” “Ass bleeding,” “Clown facing,” and “Donkey punching” would all be accurate descriptions for what’s happened to Team E during this extraordinary quarter.
Most Managers would probably try to hush this up and not send out this Newsletter, but we have always been about transparency and having broadcast our winning months, we are going to do the same with our (albeit quite a lot more spectacular) losers and take the heat that comes with the territory.
That’s right ladies! You could go with the fund that would only lose you 20 percent a month or even, you know, make you money, if you’re into that sort of thing. Or you could go with the guys at Ebullio, who’ll lose you, let’s just say a lot more than that, but be honest about it. (Except of course when they’re accidentally sending out letters saying they only lost 0.01% when they actually lost 70, like they did in January. But that was their b, and they came clean about it, too). Totally your call.
Ebullio: We messed up, and we’re sorry [FTAlphaville]
Every day is a new day in the markets. A cynical attitude will get us nowhere.
All is not lost. I dare you to prove me wrong.
If you think this is big, you should see the undoctored P/L swings @GS.
nice forehead
@5 can you even tell where the forehead ends and the head begins?
Guys at my high school used to lose 97% of their holdings all the time. It was no big deal.
Time to get your head lube out. Its gynocopter time.
Hey 7, you used a derivative of that post yesterday and you know what it’s still fucking funny-thank you
Bess, i see what you did there.
- sc
I once had a such a bad curry that the eventual evacuation riped my ass and there was a lot of ass bleeding.
@9 it wasn’t a SAC Capital reference, it was a ball sack reference.
You should expect ass bleeding when you invest in Ebola Capital.
Comments getting a bit vapid. Where is Naked Short.
Where is Anal_yst and his thoughts?
Ebullio Capital’s anagram should’ve been a red flag:
I a bull pile act, O!
He’s already registered Ebullion Capital. Switching to precious metals.
@10 everything is a SAC Capital reference (even when it’s a ball sack reference).
What’s the problem?? This is excellent performance.
- BM (posting from Buttner N.C. medical ward)
@12/13 as anal_yst popped in to say yesterday, they’re in Aruba.
The minute I laid eyes on you, I knew you had what it took.. err.. I mean…. I know you were no good.
Did they say “losers come with the territory” in the prospectus?
When I say “BEEF!”
You say “BORAS!”
“BEEF!”
I’ll never lie to you.
-SC
Just bet on “red” and bet really, really big. Do it a lot.
Mr. Lars Steffensen
Ebullio Capital
33 Clarence Street
Southend-on-Sea
SS1 1BH
United Kingdom
Dear Mr. Steffensen:
Our business class here at the Kincaid School in Houston, TX, is studying markets and trading techniques. We used to have a guy come and speak to us but there was some trouble over that and we need a new guy to do that.
Anyway, I have been assigned “risk management” and something called a “stop-loss” to write a 500 word essay on. I saw your name in the paper recently and figured you know all about that stuff. Could you please send me some info on “risk management” and whatever a “stop-loss” might be?
Thank you,
Jason Munchlo
Junior
Kincaid School
Houston, TX
Beth -
I assume it’s a no go on the blintz’s?
Cliff A.
Top Wall Street lawyer, Mr “inside the inside” H.Rodge Cohen of Sullivan & Cromwell calls bankers cocaine addicts.
http://detnews.com/article/20100318/METRO08/3180405
@26…..you mean an educated guy wrote a book about it too???
“He is the classic guy who is the fixer, regardless of the party in power, of the intersection of money and politics,” said William K. Black, the former deputy director of the Federal Savings and Loan Corp. and author of “The Best Way to Rob a Bank is to Own One.”
~Common Crook
Jason Munchlo
Junior
Kincaid School
Houston, TX
Dear Jason,
Thank you for writing to me and inquiring about risk management and stop-loss. You can inform your class that these two concepts are used by second string, or worse, traders who do not have the confidence and/or self esteem to be the best. Risk management is used by flunkies who think that their strategies might fail. They analyze the types of failures that could occur in their strategies and then try to mitigate them. (You will note their apprehension in their approach!). The best traders, like me, know they are right and that nothing will go wrong.
Stop-loss is a mitigation strategy where you pay someone to guarantee a certain trading level. Wuss-Bag traders use this when they are afraid their strategy might not be 100% correct and they try to limit their losses. This is why the best traders make the most money. They don’t waste it on silly mechanisms like this. If you’re always right, this whole analysis and mitigation strategies are a big waste of time and money.
Yours Truly,
The Lars-ster
Jason Munchlo
Junior
Kincaid School
Houston, TX
Bonjour Jason,
Mon ami Lars told me you were inquiring about ‘risk-management’ and ‘stop-losses’ and while he is absolutely right in that they are…how do you say…’wastes of time’, there is a method of ‘risk-management arbitrage’ you might care to employ.
While most typical strategies such as ‘buying a put’ can cost you beaucoup bucks, there are ways to not only ‘erase your losses’ for free, but even manage to get paid hundreds of thousands of dollars a year to do it. You will first need to get a job in ‘operations’ and familiarize yourself with trade tickets…after that, simply brush up on some basic editing skills and you’re on the path to ‘la richesse’.
Ton ami,
Jerome Kerviel
Delta One Trading
SocGen
January 18, 2008
The objective for the fund is double-digit annualized returns with a positive rolling 12-month period with a maximum drawdown of 10% and a standard deviation of 5-10%.
@30 so you’re saying there’s hope of getting that 86% back?
-another former Lehman quant
Yeah, down 96% YTD, Big FD when you’re talking (.96)x $10mm. This guy is a total piker in the shallow end of the pool with sissy arm floaties on.
Best,
Brian “-$6B” Hunter
Hey what the Fuck! I can rally back! I’ve still got 14% – who’s with me ??!!
Love, Lars
This guy is an amateur
-AIG quant
And still outperformed the entire banking sector for 2009.
The guys is a crook, Milking Research Reports by quoting research report info back at the market – so he is not clever “Just cunning” Very Cunning ! Don’t give him your money….run to a casino instead ;O)
The guys is a crook, Milking Research Reports by quoting research report info back at the market – so he is not clever “Just cunning” Very Cunning ! Don’t give him your money….run to a casino instead ;O)
Is there some sort of “FRAUD” covered up with
these sudden losses ? ? Hmm
HOW can the Administrator “NOT” know why the NAV’s are misrepresented – Done more than one’s maybe ?
GlobeOp Financial Services is the fund’s administrator, according to the investor letters.
“Estimates are generally developed by fund managers based on their own estimate of profit and loss,” GlobeOp Financial Services
said in an e-mailed statement today. “There is generally no involvement of the administrator in the development of these estimates.”
http://www.businessweek.com/news/2010-03-16/ebullio-commodity-hedge-fund-says-january-loss-was-70-not-1-1-.html
Can any 1 tell me what exactly the administrator’s job is – no involvement in est Nav’s not a good excuse ?
What other things did bold Lars LY about -So Where is the FSA in all this ? UN-Freaking-Leave-A bul !
He (SHOULD) be SUED !!!!!
Honesty-WHAT honesty ! This sort of Trading… U CANT Hush Up !!
Do;(((nt tell me he can Trade – Did he bribe/BUY his licence in a GONIFF Shop ??!!
Who needs a brain or risk management if you have a big bold
EGO like this egg head air head….don’t see any appology in his
crafty letter. It Smelssss like an attempt to be an attention seeking insecure famous faliour….(Nice Try)…but didn’t fool me
Ebullio’s US Marketer David Maynard told Opalesque
“transparency to investors by making such information available as daily NAV reporting” -> TRANSPARENCY ?? Not much good then when EBULLIO appears to be Lying abt NAV’s !!!
“Our risk management has played an extremely important part in our smooth equity curve ?? and lack of volatility, we immediately protect our positions ?? in order to ensure a limited downside on our positions”->REALLY…?? How do you explain the 96% Losses then Mr David Maynard………..we like to sleep at night and our commitment to the strategy is rock solid.” “while keeping an eye on the bigger picture” -> Glad “someone” can get an eye shut….Bet – the investors CAN’T !!!
http://www.opalesque.com/Commodities_Briefings/Guest/102575/Commodities_fund_Ebullio_Capital_proves_performance_still426.html
Ebullio’s US Marketer David Maynard told Opalesque
“transparency to investors by making such information available as daily NAV reporting” -> TRANSPARENCY ?? Not much good then when EBULLIO appears to be Lying abt NAV’s !!!
“Our risk management has played an extremely important part in our smooth equity curve ?? and lack of volatility, we immediately protect our positions ?? in order to ensure a limited downside on our positions”->REALLY…?? How do you explain the 96% Losses then Mr David Maynard………..we like to sleep at night and our commitment to the strategy is rock solid.” “while keeping an eye on the bigger picture” -> Glad “someone” can get an eye shut….Bet – the investors CAN’T !!!
http://www.opalesque.com/Commodities_Briefings/Guest/102575/Commodities_fund_Ebullio_Capital_proves_performance_still426.html
When I read Ebullio’s newsletter “95% Loses in 2 months” on metals alone – and then act like it’s (N0) big deal to investors, I thought he is literally insane !!
Insane Traders should not be trading -Ever Again !!.
Having read the Reuters Tin article
I questioned how diversified Lars man is – how much tail risk and leverage is on the table…and in actual fact…since Reuters announced Oct ’09 Ebullio is behind the long term tin market squeeze…as a past investor, I would have run for the dore then…!
Quote newsletter: “Extraordinary circumstances” forced Ebullio “to liquidate and/or cancel parts of the physical book ”
Oh dear….Face it, you tried to squeeze the market and got run over…Major-ly ;?/
Yes 39….lets question here were was the administrator in all this ?
Agreed 37 + 40…what more is covered up ?
Honestly…what does a twenty year old kid know about trading ??
Article: Bloomberg 4 -1-2010
Commodities back as Gurus eschew financial assets
C Carpenter, Anna Stablum and Yi Tian
David Sutcliffe, a 20 year old kid – partner at Ebullio Capital Management LLP in Southend-On-Sea, England, quoted market reports back at Bloomberg – and coined it…..
Last year “was special because the rising tide lifted everything.
Indeed..you guys attempt to make $$ by squeezing the Markets !!
Now that’s out of the way and we’ll enter an environment that separates the wheat from the chaff.”
Indeed, wheat from the chaff….Not many hedge funds (like Ebullio here) manage to looze 94% off all trading capital in one go ? Now please just tell us lad – how you managed the losses so well ?? Should you be trading at all ?
Santa’s Steffensen’s little helpers…this David Sutcliffe and Gregory Cain…where did they have a trading career (ever made ANY $)..anybody out there know about them…think NOT..To be made Steffensen’s partners at (20 something)- wet behind the ears,seems like just another attempt at his “wealing and dealing” which begs to bestow any confidence in serious buyers..!
OH, but then again EBULLIO and its Steffensen appear not to be a serious or trustworthy Mayfair hedge fund anyway…..Seems like a bunch of loozers and liers..in their hideout in Southend.
I mean, a hedge fund who easily lies to their administrator, investors and themselves, among themselves about NAV’s and go* knows what else, should not be in business.
What is also not clear is why those losses are such a mystery..
Who can trust this Steffensen guy, who want’s to anyway !
123people
I knew Greg Cain (http://www.ebullio.co.uk/ourteam.html)!! He had a very short period of time with me at an IDB and got booted after 6 months for being ****. Also remember he had another short 6 months at what was then Refco trading services, where he also got booted for being ****.
Amazing that anyone would allow him near $500 mill.
Shit as hell Crooks join Crooks.
fQvMoX Thanks a lot for the blog. Great.