Fund Manager Holding Back Tears as He Regretfully Says Good-by to Clients in Heart-Breaking Video

December 2, 2018 James Heinsman In the News

James Cordier, founder of OptionsSeller.com, posted a video in which he apologized to his many clients, who he refers to as “family,” after sustaining losses guessed to be about $200 million.

The company was essentially wiped out due to the recent roller-coaster ride of oil and natural gas prices. The firm was vulnerable to the extreme volatility due to its investing strategy of selling “naked” options, which is a high-risk proposition.

The over-ten-minute video went viral as Cordier called out many of his clients by first name, tearfully and wistfully stating his regrets that they will never “go bass fishing” or “join[ing] you on the Riviera.” He thanks one client in Kansas City for sending him BBQ sauce, saying “I will enjoy it and think of you always in the future.”

Cordier frequently compared managing his hedge fund to steering a boat, but this time, he lost control due to forces beyond his control:

“I always wanted to make the best turns for you, and I tried making small ones. I am so sorry that I was unable to manage the rogue wave that hit us this week. You were my family, and I’m sorry that this rogue wave capsized our boat.”

The “rogue wave” Cordier referred to was the sudden 18% spike in the price of gas and oil on November 14, and the capsized boat, his firm.

On November 15 the company sent an email entitled “”Catastrophic Loss Event” to its clients. The email explained that not only was all their money lost, but some could end up owing money to a company called INTL FC Stone, which handled the trades for OptionSellers.

Clients had to invest a minimum of $250,000 to be part of the company’s strategy. OptionSellers had 290 clients, and losses most likely surpass $150 million, leaving some clients actually in debt.

One client, a California software engineer, had about $470,000 invested with Cordier. He says he now owes $150,000.

“How could they have possibly done this in three days? All that money is wiped out,” he said.

The video was at first taken down, but later it was re-uploaded to YouTube, and then went viral. One trader said, “It’s all anyone in the market can talk about.”

Not many Reddit users felt sorry for Mr. Cordier on the platform’s message boards. One posted “The dude was picking up pennies in front of a steamroller and was run over.”

Cordier’s clients were also not the subjects of much sympathy: “If you’re writing $250,000 checks to something with the name ‘OptionSellers.com’ then you probably deserved to lose your money,” said one writer on Reddit.

James Cordier, OptionsSellers.com, Reddit,

Comments are currently closed.


Powered by WordPress. Designed by elogi.