Opinion from Alphaville: Only seven of these top 25 trading losses are from funds: most are either banks and normie companies who mishedged.

Now there are two steps to a fund losing a lot of money. The first step is to inspire faith in either a large number of fairly wealthy people or a small number of immensely wealthy people to pay you vast sums because you’ve got both great ideas and decent risk management.

The second step is to do exactly the thing loads of people use to make a lot of money: throw together a credible investment thesis, have sufficiently high conviction in it that you’re able to persuade yourself and others to cast aside risk management 101, maybe chucking a bunch of financial leverage into the mix for good measure.