Back to Blog
When Hedge Funds pull their business so follow the smartest traders.
Whether DB survives or not due to government intervention, no one is mentioning that the smartest and largest traders of the firm have left and are leaving. Many will take their hedge fund clients to competitors. This further exacerbates the run on the bank.
Some may do what I did when Bear Stearns was sinking which is to go across the street to a prop hedge fund and short the crap out of the firm all the way down. (Something I couldn't do while employed by Bear) The best trades happened every-time Bear got a pop in the stock such as DB is doing today because of the CEO's assurance. The fact is, the top brass will defend the company all the way down and if it wasn't for me bailing out of Bear Stearns with my retirement intact, I wouldn't be writing this to you today. Although I left 8-10 months before the final nail in the coffin was hammered into BSC, most of the firms traders and employees went down with the ship.
Again, only the smartest traders and analyst left Bear well before it was sold for $2 bucks/share, and I know without a shadow of a doubt this is happening again with DB.
If you would like to learn more about how to employ my "Institutional Bias" into your market analysis and trading feel free to email me.