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Goodbye NSFG
Tags: NSFG.This post came late since there was no way I could update the blog last week.
NSFG has apparently hit margin calls for their trading account (pool) and called it quits. Is there any MA holders that can verify and give us some insights?
Updates from Ken, NSFG.
Important Update
Yesterday evening our broker in London, BGC, made a margin call on all our accounts after a drop in equity made it impossible for us to maintain the large open negative positions we have been holding for a while. It forced us to liquidate all open market positions, including both arbitrary trades and the hedged position for an all out loss. The large negative P&L had been built up as the global equity markets plummeted following the serious credit concerns and it caused a major unwound of the carry trades, not only in the Yen pairs but also in the Swiss Franc crosses. Attempts to trade around these arbitrary positions failed and we are forced to close down the company following this margin call since we have no liquidity left. Hundreds if not thousands of hedge funds and investment firms around the world have severely suffered from this global incident and we regret not to have
been able to pull ourselves through the credit crisis unharmed.This liquidation has serious consequenses for everyone involved. Personally, I have lost my own private trading account and are now forced to sell my house and liquidate my personal assets to be able to cover expenses until I can move and I will most likely end up with a serious amount of debt to banks and credit institutes. Along the way NSFG has been confronted with obstacle after obstacle and although we have tried our very best to stear clear of these obstacles, this last financial crisis killed our dream. There is no way we can regain what has been lost and the sensible thing to do is pull the plug now and get things closed down for good.
Ken, on behalf of NSFG Ltd
It’s a joke and shameful of what they have been through. Sadly they seem like a bunch of novice traders trying their luck to fool around with investors money in the first place.
Popularity: 26% [?]
Narsil verified that the MA’s got hit with a -70% loss, all of them withdrew the remaining funds. Whether there is something left in the pool is up for debate but I dont think we will get an answer from Ken or Paul about that.
Could we get Narsil here or NN?
Hey Jude, try to PM him at hyipDiscussion, he is a member there. Its your duty to invite him to the blog
Well, that crash was the last “investment” I had in HYIPs, besides the pay money I put from time to time here and there.
By the way hyipDiscussion is down again, another DDOS?
obviously the DDoS isn’t gonna stop anytime soon. I’ve ported the mailinglist to aweber, and will be asking and promoting the email style of nobs soon. Its for the better I think.
It’s unfortunate to hear about what happened with NSFG. After communicating with Paul a year and half ago, I was not comfortable with how he was managing the account and decided to not to add to my deposit. By that time he had already lost some funds.
He is correct when he saids a number of hege funds had to dip into their credit lines to weather this last world economic crisis. A number of programs that were “really” trading also took a pretty big ht. Especially those depending on “carry” trades. This for the most part was easy money up until recently.
NSFG was already shaky and was forced to trade more aggressively to make up for losses incurred earlier last year. I think if they would have just held to their original trading plan, they may have weathered this storm.
On the other hand, client confidence had already been badly damaged following their banking fiasco last year. If they did not perform well, members may have pulled their funds any way.
So, NFSG was between a rock and hard place. Unfortunately, progams in this hip arena live and die by their latest return. People want high returns and they want them now.
I have been trading through this volatile period utilizing a hedged trading strategy that has been working well for me and my clients.
I, like most hedge traders was caught holding a large negative position for most of the month.
Fortunately my hedged pairs have been slowly recovering since mid Aug. and I am currently showing about a 5% return for the month.
Nothing to shout and jump up and down about, but my strategy has allowed me to earn a consistant 3% – 15% monthly for my clients.
I feel bad for Ken and Paul. I think they really did try to run a legitimate program.
Market conditions coupled with a demanding client base unfortunately was the down fall of NSFG.
I wish the best for Paul and Ken.
To be honest.
The reason they traded carry trades and high risks trades recently was the pressure of getting good results in. People didnt allowed them to make any mistakes anymore ..
The program’s downfall was actually the 70% loss due to seizure of funds by the government.(50% loss 20% more loss because they allowed people to withdraw 100% for a while) Since then, they were always running behind the facts. It forced them to trade more aggressively, which eventually killed and finished them off.
I also think they had the best of intentions but their very bad money management was their downfall. The last email where Ken says he has to sell his house is a bit bullshit tough, its just a last attempt to recieve some sympathy from members.
The members lost their capital, Ken and Paul lost their reputation. Time to let this program go and move on.
Well…
There were more than enough signs that the carry trade was unwinding. It happens as it should, it’s a rather vicious cycle, but in the end, it all boils down to money management plus a good understanding of the fundamentals (for me that is).
They should have cut their losses early, plus not to mention that they had at huge positive the month before (16% if Im not mistaken) they should have taken the hit and waited till the curriencies settled down.
After reading their last update about regretting the “possible” profits they had… the only thing that was left in my mind was “Damn these people are greedy.”
Be happy with 1-2%, extremely happy with 3-5%, ecstatic with anything higher than 5%, that’s a hella lot more than what yer bank is giving you.
At least the saga is over.