Everyone on the news is talking about FTX – the Crypto Currency brokerage firm based in The Bahamas. It is owned by Sam Bankman-Fried (SBF) and it declared bankruptcy on Friday.

SBF was one of the world’s biggest billionaires just this past Spring. I happened to be in Nassau when he hosted some of the world’s biggest names in investing this past May. It’s estimated by CNN that his fortune was $26B earlier this year. That was before he decided to leverage client assets at FTX and use the funds for personal trading at his own private trading company, Alameda... and lost way too much of it.

It’s said that big names were caught up in this trainwreck. According to Coindesk, Tom Brady had a fortune tied up in FTX and now has those accounts frozen with the possibility of never getting his funds back – good thing he hung onto play for one more season.

This whole fiasco serves as an important reminder about the investment game; If you’re not managing risk, you may not survive… and if you don’t survive, you certainly can not thrive.

We participated nicely in the gains last week. On Friday, we took gains and now hold only 50% equity exposure as we head into this week