davidmerkel

Recent Comments

  1. 1
    Posted 2008-12-11 15:12:11 on Advice To Our Hedge Fund Friends, Courtesy Of AQR

    Bess -- did you check the IP address of the guy who posted as Asness? That would be significant to state explicitly. If it came from someplace other than AQR, then this story is dubious.

  2. 2
    Posted 2008-02-28 13:01:47 on Why Do Rogue Traders Always Lose Money?

    Consider Andrew Krieger, who made a boatload of money for MS trading foreign currencies. Had he gone wrong, he could have blown up MS. As it was, MS did not pay him what was promised in his comp agreement, which would have been a huge sum of money even in this era. He left and sued. No idea how it turned out. Risk controls then weren't what they are now... but still, the tendency of management to accept gratuitous gains and look the other way remains. Losers get called rogues to protect the managements with bad risk controls.