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Log inHow an Internet-trained Apple analyst lost tens of millions of other peoples' money
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How an Internet-trained Apple analyst lost tens of millions of other peoples' money
by FluteHolder Mon Mar 04, 2013 11:28 pm
http://tech.fortune.cnn.com/2013/03/04/apple-zaky-bullish-cross/
Bt the fall of 2012, Zaky was desperate to recoup the fund's losses. He bet what was left of its capital on more call spreads, gambling that the stock would rally at $630 and hit $700 by January.
When Apple fell to $505 in late November, he sent his investors what must have been one of the most painful letters of his life:
"Dear Limited Partner," it begins. "It is with extraordinary regret that I must inform you that during this very dramatic period, the fund has sustained very heavy and largely irreversible losses... At this point, it makes very little sense for anyone to make a redemption given that the fund's liabilities are greater than the fund's capital balance."
Zaky had taken under management more than $10.6 million of other people's money and lost it all.
But those lost millions -- suffered largely by well-to-do investors who knew the risks they were taking -- pale next to the damage done to the 700 subscribers at Bullish Cross Pro. Many of these investors have since fled the site and joined a Google group called bc-subs (for "Bullish Cross subscribers"), where they commiserate about their lost retirement funds, their ruined marriages, their thoughts of suicide. Many lost hundreds of thousands of dollars. Some lost millions.
Bt the fall of 2012, Zaky was desperate to recoup the fund's losses. He bet what was left of its capital on more call spreads, gambling that the stock would rally at $630 and hit $700 by January.
When Apple fell to $505 in late November, he sent his investors what must have been one of the most painful letters of his life:
"Dear Limited Partner," it begins. "It is with extraordinary regret that I must inform you that during this very dramatic period, the fund has sustained very heavy and largely irreversible losses... At this point, it makes very little sense for anyone to make a redemption given that the fund's liabilities are greater than the fund's capital balance."
Zaky had taken under management more than $10.6 million of other people's money and lost it all.
But those lost millions -- suffered largely by well-to-do investors who knew the risks they were taking -- pale next to the damage done to the 700 subscribers at Bullish Cross Pro. Many of these investors have since fled the site and joined a Google group called bc-subs (for "Bullish Cross subscribers"), where they commiserate about their lost retirement funds, their ruined marriages, their thoughts of suicide. Many lost hundreds of thousands of dollars. Some lost millions.
FluteHolder- Posts : 2355
Join date : 2011-06-03
Re: How an Internet-trained Apple analyst lost tens of millions of other peoples' money
by Merlot Daruwala Tue Mar 05, 2013 1:07 am
That reminds me: whatever happened to Desichatter? No predictions on the forthcoming catastrophe of 2013 from him? Or did I miss the oracle's pronouncements?
Merlot Daruwala- Posts : 5005
Join date : 2011-04-29
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