Re:Theranos Low on Cash After Settlement with Walgreens
by jzebedee on Wednesday August 02, 2017 @01:38PM
(#14912810)
I don't think equating LTCM with fraud is exactly right. They used an incredibly risky strategy and had their leverage blow up in a black swan event. A failure, but not fraud.
Re:Theranos Low on Cash After Settlement with Walgreens
by unknown_apostle on Wednesday August 02, 2017 @02:07PM
(#14913098)
No you're right, it's fundamentally wrong to compare Meriwether with Corzine. But my kneejerk response was to the "entrust your money".
Re:Theranos Low on Cash After Settlement with Walgreens
by btilly on Wednesday August 02, 2017 @02:05PM
(#14913083)
A black swan event caused by the phenomena that previously uncorrelated financial indicators temporarily become correlated under stress.
A few months after they blew up, their portfolio was profitable again.
Re:Theranos Low on Cash After Settlement with Walgreens
by rgbrenner on Wednesday August 02, 2017 @02:02PM
(#14913048)
"Though in all fairness I don't know whether he pulled that one off."
He didn't. In fact, that was his 2nd attempt at raising a fund.. he tried in 2012 right after mf. And he's currently working on his third attempt to raise a fund. http://www.zerohedge.com/news/2017-05-18/corzine-tries-launc...
If anything, that's a pretty good example of my point.. no one wants to give their money to a fraud.
https://en.wikipedia.org/wiki/John_Meriwether
"A year after LTCM's collapse, in 1999, Meriwether founded JWM Partners LLC. (...) Meriwether opened his third hedge fund venture, named JM Advisors Management, also based in Greenwich, Connecticut, in 2010."
Meriwether blows up and is not a fraud. But then there's this guy:
https://www.wsj.com/articles/jon-corzine-considers-launching...
Though in all fairness I don't know whether he pulled that one off.