The idiot who dropped more than $195m in VIX contracts, seeing 89m of them expire worthlessly, has been unmasked.
The Financial Times did some solid investigative work, talking to several banks who ran these moronic trades, and concluded that it was Ruffer LLP — a $20b hedge fund located in London.
The 50 cent trader earned his name by dropping tens of millions into volatility options contracts, all at the stupid price of fifty cents. It’s like an autistic OCD addled trader broke out of the insane asylum and wasted a bunch of money for an otherwise great firm, who manages money for the Church of England.
The Founder of Ruffer LLP, John Ruffer, has a history of throwing money away, for ‘charitable’ reasons — such as his vainglorious effort of preserving Auckland Castle.
Rich people.
If you enjoy the content at iBankCoin, please follow us on Twitter
So the fund has lost about 1% on these hedges? How is that ruinous? Would’ve probably cost more if they used s&p puts.
losing 89mill because you wanted to place eccentric trades in options priced at only .50 is indeed ruinous. Had he done SPY puts, he’d save himself a lot of money.
some people just want to see the world burn.