“This is the kind of risk management the market should expect right now. It’s pretty basic stuff,” said a person close to one of the banks.
Link to the article…
https://x.com/mariorandholm/status/2082358902788599811?s=46
The person said many of the demands were automatically triggered by market volatility. Banks build in protections when lending to hedge funds to ensure they do not incur losses in case the market turns negative.
Under pressure: Long-short hedge fund strategies were down 1.3 per cent as of noon in New York yesterday, while multi-strategy funds declined 1.7 per cent, according to a Goldman Sachs report.
The last time all of those strategies were down more than 1 per cent in a single day was during the swings caused by the Covid crisis in 2020, the report added. Hedge fund strategies were still on average up more than 10 per cent for this year.
P.S., once again I want to reiterate the importance of operating as a team; trying to do it alone limits the checks and balances that many of us need…
YESTERDAY A FRIEND AND I DISCUSSED: The important thing is not to predict the future crash, but to win / generate that much that we don’t have to worry about predicting the next move….
