Quote Originally Posted by Charles Prestridge View Post
I can’t imagine having my wealth tied to hedge funds like this.

Looks like when Viacom and Discovery really grew this year, he kept borrowing against the stock increase and was multiplying margin.

Hard to believe banks would keep lending him without much to back-up the margin loans.

With Hwang’s past, I don’t know how he could talk the large investors to use him.

Good lesson for all of us. At some point, losses will occur. Don’t get caught with your pants down, when the losses happen.
The scary thing is, this keeps happening and nobody ever learns a lesson. Greed is deadly. I watched a documentary on this family offices. They were supposed to be operated like traditional hedge funds, to give very wealthy a place to park money and earn a stable return with less risk. Looks like that is not what happened here. I am fine using an advisor to give me advice but I would never turn money over to anyone to just invest. Scary stuff.