That would be “Other People’s Money”. Zoe Cruz, fired just three years ago by Morgan Stanley after losing $4 billion on a bad bet on mortgage debt, has now seen her hedge fund shuttered after betting wrong on the direction of the dollar.
Earlier this year, Voras Capital reported having $90 million in assets under management, compared with roughly $200 million Ms. Cruz had previously said the firm managed, according to people familiar with the matter.
Ms. Cruz said that despite losing money last year, she had “very strong views: The equity markets and U.S. Treasury yields would go up, and the dollar would collapse.”
She placed trades through derivatives that would “lose some money” if her views were wrong, according to the letter.
“But if I were right, we would make multiples of the investment,” it said, adding, “Unfortunately, I have no such strong convictions now.”
Here’s the part where we learn why we were fools not to report for work on the Street after graduating nursery school:
Asset managers and banks have been in touch with Ms. Cruz about potential jobs, said people familiar with the matter.
Yeah, we want some more of that!