对冲无法解决 - 一个倒塌的对冲基金的故事
大学毕业后的11个月后，我很幸运地偶然发现了LinkedIn帖子，寻找对冲基金的初级投资分析师。我毫不犹豫地抓住了这个机会，即使这是一家很小的商店（500毫米），而且很幸运地被雇用。来自非目标，这是一个梦想。
The Exposure Was Great At First
The first few years, the exposure was great. I learned how to model and value some of the most complex structures on the street, was mentored, understood all types ofrisk scenarios, learned how to hedge, represented the company in Roadshows, and worked to set myself up to move into managing a portion of the book. The only unfortunate thing was, assets that I worked on started to be less yieldy, as traders and investment managers began to see and realize there was still inherent value in these instruments. Our returns decreased each year, and since some of these instruments difficult/impossible to repo, management decided we needed to expand into other strategies to increase return and attract new investors. We tried tolook atCD, equity shorts, and non-IG corporate debt, but they didn't pan out as planned.
他甚至在我们的圣诞大餐中得到了特别的吐司
The pivot then brought in a rates and macro trader for diversification, and boy, did it work out. His returns were in the high teens. More and more money was allocated to him, and the CIO was thrilled to tout his skills and outsized returns to our investors. He even got a special toast during our Christmas dinner. Everything was great, until it wasn't.
one day a few months later, the macro trader, the CIO, and the head trader looked nervous, and continued to shuffle in and out of meetings. Something seemed off. The next Monday, the investment analysts were pulled into a meeting with the head trader and CIO, where we were told we were liquidating the main portfolio (AON bids). They were not telling us why, and there would be no questions. Obviously, something was wrong.
The employees continued to speculate on what was going on, to no avail. One day, the macro trader went into a meeting in our conference room. Him and the CIO stayed all day. Multiple different 'suits' that we had never seen before walked into the conference room. We all were clueless as to what was going on. Speculation continued between us on the desk.
下午/晚上晚些时候,我发现自己被the last one on the desk. Suddenly, the macro trader walked out of the room, surrounded by the suits. He pointed out his desk, and was then asked to stand on the wall directly in front of his desk between two of the suits. Two other suits approached the desk; one then began ransacking his desk and belongings, taking every notepad, post-it, cell phone, and mail from the drawers. The other went to the desktop computer, unplugged it, and took it under his arm. When they finished, all of the suits walked out of the office with the belongings, with the trader between them. I haven't seem him since.
After word got out about what occurred, and everyone noticed his obvious disappearance, it became obvious the trader did something nefarious. Sure enough, a week later, a conference call/meeting was held where the CIO let us know the fund would shut down in the next 2 weeks.
The Trader Had Gone Rogue
事实证明，交易者流氓并承担了公允价值会计欺诈。他不断歪曲LIBOR(选择不同来源)或其他传播curves used to value his positions, inflating the returns and value. The marks, of course, were directly responsible for his compensation, netting him millions off of fake gains. When trades started going sideways, he did not own up to his position's outcome and take the loss. Instead, he utilized more funds, doubled-down on his bets, and continued to misrepresent fair value, hoping for a turn in the market to erase his losses. Eventually, the ability to cover his tracks imploded, and compliance/back office staff figured消除计划。
Since returns were misrepresented to clients, there was no other choice to close shop, and the the firm self-reported to the SEC. We were devastated, and unemployment was in our future. There are still a few people who have yet to recover. Some co-workers were in depositions and part of the SEC investigation for years.
他再次被捕...
once the story broke, the rogue trader claimed the CIO was in on it the whole time and was using him as a scapegoat. While at first most of us thought it was plausible and probable for years (after all, it was a small shop), the tune changed when, just recently, he was arrested AGAIN by the SEC for a ponzi scheme, stealing money from neighbors, friends, and even family. To make matters worse, he was already suspended from the industry and used his families brokerage accounts to mask his identity. The most likely outcome is he will be barred from the financial industry for the rest of his life, owe millions in reparations, and potentially face jail time.
Funds Fail Much, Much More Often Than You Think
The point of the story is to bring people back down to earth to realistic scenarios that can happen to any one of us in the financial industry. Funds fail much, much more than you think. There are bad people working out there who will have no remorse for their fellow co-worker. If you ever spoke to this what I will now call sociopath, you would never, EVER, think that he would do something like this. He was one of the nicest, funniest, soft-spoken and humble people working at the firm. Clearly, his facade worked, and masked the devil inside.
这是一个谨慎，有趣的故事，你们大多数人永远不会经历。我真的希望你们都没有经历过。
If you have any other questions or comments, please feel free to message me or ask below.
Comments (26）
感谢您分享。虽然很痛苦，但似乎很幸运，这是您职业生涯的早期。您能谈谈您采取的直接下一步吗？听起来您是27-29岁，Prob在银行里有一些钱。您只是打电话给HH并加入另一个基金吗？还是该基金的黑色标记是您下一次演出的困扰？
这不是黑色的边缘，但听起来与这本书相似。
First off, love that book, I couldn't put it down, and that says a lot for a person who absolutely hates reading books.
You're right, it was fortunate I was younger. A lot of the older staff had some serious issues getting a gig again, some couldn't get into another fund.
It was a small fund, so not as much $$ in the bank as you would think. First thing, filed for unemployment. I honestly don't remember how much I had in the bank at that time, but it was enough that I could continue to live in my apartment & maintain some of the same lifestyle, but not enough to just not care about $$. If timelines extended out more I 100% would've had an issue.
I took a week or two to gather myself, and then for hours each day, cast a wide net and applied to everything I could find that was in the asset class . I spoke to a lot of HH. Became fantastic at FIFA during this period.
老实说，直到第2个月，我都没有接受任何采访，然后突然间我在街上有5个以上，甚至每天两次（BD在一家精品店，IB在非BB, RA, lending at aBB, for example). I luckily didn't get a black mark, but it was definitely an interesting conversation to have during interviews when they asked 'why did you leave?'. At that time I decided not to try to go into another fund because I wanted job and financial stability before throwing myself into something like that again (build that nest egg). Ended up at aBBwhich still I consider myself very lucky to come out relatively unscathed.
Even years later the topic and conversation always comes up in interviews, But, at this point it makes for a great engaging conversation and is something unique to remember me by during my candidacy for a position.
so what did you tell interviewers who asked why you left? rogue trader or "next career step", etc ?
That sounds like a scene mixing Axe Capital and Archegos. Well written too, but I'm sorry about what you had to go through. Good luck!
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I literally thought he was going to troll us and start in with the Billions storyline. Very interesting story OP. Thanks for sharing
oP's post as a story would be better than most seasons of Billions
Netflix be calling soon.
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现在一切都很好，实际上再好不过了！这只是您认为永远不会发生的事情之一，然后它完全是超现实的，整个经历。制作一个很棒的晚餐派对故事，我很高兴您喜欢它！
很棒的故事，感谢您分享男人。在FICC工作看到了其中的一些。他们所有人都必须与“商标管理不善”有关。我对CIO感到难过，但是我确实很瘦，他知道过了一段时间，只有解决方案就可以解散该基金，所以并不是每个人都去Jai。
Nice post, but sad that "white collar" criminals never see a jail cell and their punishment is being banned from trading lol when they literally ruined peoples lives.
我们将看到会发生什么新的,想他might see a jail cell for a short period of time. The punishments still owe millions in restitution, but who knows if that actually gets paid out. People do go to jail for financial crimes, but its usually the larger scale, high profile cases. Don't disagree with your thought, though, it should at a minimum be considered, dependent on circumstance and scope.
Interesting story thanks for sharing.
令人难以置信的故事。感谢分享。
永远不要他妈的around with博/遵守。
delete
我不确定这是如何相关的，但是任何OBI都需要遵守合规性并获得批准，同样需要进行交易前的清理方式。
Thats Fucking Wild. I believe every word.
My mentor always screams at me to never ever ever play in the Stock Market unless parking capital in the S&P as a strategy.
Steve Cohen 50% returns at SAC are truly Suspect. And let's not forget Raj @ Gallion!
SEC investigations are really fascinating. I would highly suggest going to a few seminars about what the SEC does.
Great Story.
就像你的故事伴侣
Seems super messed up what the hedge fund was doing and defrauding all the stakeholders including its employees. Never worked for one , and so don't know what is a comprehensive list of red flags to look for when evaluating one. But this is insightful.
一定要知道这是一位交易者 - 调查得出结论，这是一个独奏演员。他欺骗了基金，员工和投资者。当后台不太精通产品时，后台很难发现定价错误。如果您问我他的标记是否合理，我不知道从哪里开始。
I wouldn't walk away from this story making a blanket statement onHFs... you can look at any corner of the industry and find instances of fraud, from local FAs toBB交易部门。困难只是一般ny of us to find an automatic red flag, but these scenarios do happen, we just generally hear of the big ones that make national headlines.
一切都是好有趣的故事！感谢分享
我现在想要一部纪录片。
Jeeeez that's an awesome story to have lol. Hope you landed on your feet after and that none of this biz interfered in your getting a new job. I'm sure it was crazy to be at your first job and see someone get picked up by feds. Hell that's crazy no matter what your tenure haha. Thanks for sharing.
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