In today's newspaper The Age, on page 14, an investor handed $1M to a funds manager. After 3 months, he only had $100K left.
$900K was lost in 3 months by a professional funds manager. He would have been better off getting 6% risk free from a bank for $60K p.a.
The story goes like this:
"....buying shares in a company going ex dividend with a high yield, and simultaneously buying put options and call options....."
I wonder whether some of the people out there actually know what they are doing and actually understand what risks are involved. Prima facie, the answer is "No".
To all readers here in this forum who have invested money with funds managers, if you have not done so already, check where your money has been "parked". If your fund manager has invested a chunk in companies that have announced big profit downgrades or even worse, collapsed, you probably have already lost money except that you might not have been told yet. Buyer beware.