Trader’s Narrative

There is a rumor that the (in)famous trader, Vic Niederhoffer, has blown up… again.

For those that aren’t familiar with Niederhoffer nor his history, click here to read his wikipedia entry.

For those keeping track, this monumental blow up makes it 2 for 2. Vic came close last summer when he suffered a debilitating loss of around 30% !

Incredibly Matador (his hedge fund) clawed it’s way back from the brink and survived.

But the rumor is that this time it is definitely over.

According to the unsubstantiated rumor, Matador has lost 93% of its funds! Their prime broker apparently forced a liquidation of their positions.

Seems the fund was short 15,000 1000 strike August ‘08 puts.

The same source is claiming that the Wall Street Journal will be coming out with an article about this. So keep an eye out for it.