John Corzine's New Hedge Fund Is Betting On Trump-Triggered Trades

It seems there are more greater fools than we imagined... about $300 million more...

8 years after he took the helm at MF Global in March 2010 (imploding the firm the next year, leaving more than $1 billion of customer money missing, in the eighth-largest bankruptcy in U.S. history), Jon Corzine is back with a new hedge fund that’s betting the Trump administration will stir up markets.

As Bloomberg reports, the JDC-JSC Opportunity Fund, which bears the initials of Corzine’s late son Jeffrey and his own, will launch this quarter and aims to attract $100 million to $300 million in its first trading year, according to a person familiar with his thinking.

Corzine and former Taconic Capital Advisors investment director Richard Chappelear will share the chief investment officer role.

Corzine, 71, whose wide-ranging career includes serving as a U.S. senator and governor from New Jersey, is jumping into the hedge fund industry as it struggles to raise money.

His fund will make event-driven and macro trades on the expectation that President Donald Trump’s policies will trigger corporate actions and ripple through asset valuations, the person said.

Tax reform could spell stock-price divergence in sub-sectors of the small-cap Russell 2000 Index, spurring deals.

The fund will begin with event-driven trades and expand into macro investing -- trading interest rates, currencies and stocks -- when market volatility returns. Low volatility over the past few years has hindered the performance of most macro hedge funds.

Last year, Corzine paid $5 million of his own money to settle with regulators who accused him of failing to fix inadequate controls at MF Global.

He was banned from running or working for a futures broker or registering with the Commodity Futures Trading Commission, so his new fund can only invest a limited amount of client capital in futures.

Good luck investors...



YUNOSELL overbet Fri, 01/19/2018 - 11:17 Permalink

On the bright side, Corzine's new fund and reckless (fraudulent?) style of 'investing' could help to trigger the major correction and finally send gold & silver prices through the roof where the ultimate resolution will have to be a move back to sound money to restore faith in the system.

In reply to by overbet

azusgm azusgm Fri, 01/19/2018 - 14:43 Permalink

Think about it: Melissa Hodgman's promotion to deputy director of enforcement at the SEC is the "insurance policy". That is what it always sounded like. The timing was right but it never made sense before. Now the pieces are falling into place.

The insurance policy was not a strategy for avoiding a Trump presidency or ending one. The insurance policy was a strategy for damage control and moving assets offshore while escaping the country.

In reply to by azusgm

ImGumbydmmt Thebighouse Fri, 01/19/2018 - 11:27 Permalink

+10k to "Thebighouse"

The only headline i was hoping to hear about him was about his unfortunate nailgun suicide.

Let me get this straight, no only did he dodge the Orange Jumpsuit Perpwalk, he managed to keep his securities trading license too?




can not.


He's Baack.


Banana Republic.

lamp post and pitchforks folks. thats all thats left to us.

In reply to by Thebighouse

Disgruntled Goat Thebighouse Fri, 01/19/2018 - 14:22 Permalink

To review:

DEC 2009 : MF Global fined 10M for lax internal controls by CFTC .... ordered to engage an outside auditor to reorganize

FEB 2011 : After relentless lobbying, MF Global is approved by THE FED, under Ben Bernanke, as a Primary Dealer.

OCT 2011 : MF Global bankrupt, the 5th largest bankruptcy of all time. Bernanke states that " the granting of Primary Dealer status was not a 'seal of approval' ". No criminal charges filed.

In reply to by Thebighouse

CHoward Fri, 01/19/2018 - 11:14 Permalink

Now there is a man that was completely protected by the banksters/Obama/cabal.  Other than Madoff - there is NO bigger thief and yet, here he is - allowed to open shop once again.  Pathetic!

azusgm Nobody For President Fri, 01/19/2018 - 13:44 Permalink

Jamie Dimon's bank put MFG into involuntary bankruptcy.

Madoff probably saved his own life by getting his sons to drop a dime on him. He had his own security and government-funded guards while he was under house arrest before he went to the "little house" on the way to the "big house". Jamie Dimon's bank had to know what was going on with Madoff because JPM held Madoff's line of credit for years and years.

Luke 8:17

For there is nothing hidden that will not be disclosed, and nothing concealed that will not be known or brought out into the open.

It is coming.

In reply to by Nobody For President