Odd Lots Benn Eifert On The Mania That Was Even Bigger Than Meme Stocks
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Aug 1, 2022 
Benn Eifert, Founder and CIO of QVR Advisors, dives into the chaotic world of market manias. He reveals how the hype of meme stocks like AMC and GameStop pales in comparison to the reckless strategies used by institutional investors in the crypto realm. Eifert discusses the psychological drivers behind investor behavior and the dangerous consequences of ignoring risk management. He highlights the vulnerabilities of tech stocks during booms and offers insights on navigating the complexities of today's volatile market.
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Unsecured Loans to 3AC
- Benn Eifert found the large unsecured loans given to Three Arrows Capital, especially the $2.5 billion from Genesis, the craziest market event.
- These were given by sophisticated investors, highlighting surprising risk-taking by professionals.
Institutional FOMO
- Institutional investors are susceptible to FOMO, especially with momentum, fearing they're missing transformative changes.
- They often have a high tolerance for complexity, which can obscure risks.
Market Cyclicality
- Market cycles are influenced by human memory; the longer it's been since a mania, the more likely another one is to form.
- New narratives build and generate returns, tempting investors into increasingly risky behavior.