“I acted overzealously… causing you devastating losses.”

CNBC reports hedge fund manager Owen Li had over $100 million assets under management in March of 2014. By the end of the year, the fund had lost all but $200,000. Li explained he made a series of “aggressive transactions” in the last three weeks of the year to try to make up for poor returns in December. His trades ran against him… and his investors lost. Big.

If you’re a regular Daily reader… this story has to boggle your mind. We spill a lot of ink stressing the easy ways to safeguard your investment portfolio. Our Palm Beach Risk-Management Protocol—including the

Warren Buffett’s No. 1 rule—never lose money—is so ingrained in us, we tend to forget not everyone respects this philosophy. They do so at their own peril… as the unfortunate investors in Li’s hedge fund just found out.

If you have assets under someone else’s management, find out what their risk-management strategy is right now. You need to be 100% convinced they will not “blow up” your assets trying to improve their performance numbers.

If you have the slightest hint of doubt, pull your money out right away. Never assume expensive suits, fancy titles, or plush offices equate to wise money management skills… often the exact opposite is true.

For a less sophisticated illustration of what not to do… watch the 90-second clip below.

Recommended Link

A New Moneymaking Channel

A recent piece of government legislation has opened up a brand-new moneymaking channel… and we’ve created a way to make it accessible to you. It involves a number of investments many of us here at the Palm Beach Research Group have known about, but haven’t been allowed to show you… until now.

Some of us have personally taken advantage of this type of investment. And we can tell you—it’s a lot of fun. Again, this is new. So it may be a little out of your comfort zone.