Trading Strategy

SemGroup, a large US private equity company that went bankrupt last year, lost most of its money with a "No-Loss" trading strategy. Did they think that if they named it that, it would make money no matter what?

They lost piles of money as the price of oil made a big run and they were effectively short. There were also a few executives making shady moves and doubling down as positions began bleeding.

First Pass

Quashing deflation fears in Canada [Report on Business]
The effects of quantitative easing in the US [Bloomberg]
Is this what brought LEH down? [Bloomberg]
Not according to this interview [Portfolio.com]
Changing status of the USD [ftalphaville]

It's not looking good for Geithner:


This is a graph from Intrade showing the probability that he will be out of job by by June 2009.

First Pass

This can't be good. [dshort.com]

Black Swan hedge fund closing because they're are making too much money. [Bloomberg]
Rogue traders at MER before BOA bought em? [Bloomberg]
So timely. If you haven't read this yet, now's the perfect time. [Asymmetric Information]
More on BOA's lack of due diligence. [ftalphaville.com]