I agree the general thesis is still good and they should accept occasional 50% drawdowns and it’s not clear (and we’ll likely know more in the future). But this kind of urgent forced liquidation is substantial evidence of poor risk management, I think; I expect with better planning they could have handled the situation better.
I agree the general thesis is still good and they should accept occasional 50% drawdowns and it’s not clear (and we’ll likely know more in the future). But this kind of urgent forced liquidation is substantial evidence of poor risk management, I think; I expect with better planning they could have handled the situation better.