I remember when this happened, I was running a hedge fund. Supposedly he was doing collars (split-strike conversions) to make this money, but it just seemed imp

I remember when this happened, I was running a hedge fund. Supposedly he was doing collars (split-strike conversions) to make this money, but it just seemed implausible to me at the time, since I traded options. I figured he just punted futures, nice and easy way to sorta hug the index (I hadn't seen his "returns"), maybe Martingale it and get lucky until you're not so lucky. But then it turned out he wasn't doing anything at all. This was a bit of an insight for me, because I'd been through investor meetings, and they ask a lot of things. Mostly the wrong things, but they do ask things that you need to actually have had a fund to answer, like "who does your audits". So I was pretty amazed when it turned out he got away with some DIY audit (through a friend?) or something like that. One thing that did seem to happen immediately was that investors seemed to play it safe. Not great for little funds. I think a lot of them were spooked by some quite big names getting scammed.