Oops! Hard-Hit Ebullio Lost 70% In Jan.

Mar 17 2010 | 12:23pm ET

Ebullio Capital Management CEO Lars Steffensen says he always bounces back. If he manages to do so this time, it might set some kind of record.

As reported yesterday, the British commodity hedge fund lost 86% in February. But it had already lost most of its money in January, according to updated figures for that month in last month’s report.

Ebullio, which managed US$42.3 million in November, originally told investors it had lost only 1.1% in January. But the fund actually plummeted 69.65% in the first month of the year. Combined with its February swoon, Ebullio is down 96% in the year’s first two months and has just US$1.47 million left.

“The moment we knew the actual January loss, we brought that up to our investors immediately,” Steffensen told Bloomberg News. In the firm’s February report, Steffensen blamed “extraordinary circumstances” for the extraordinary losses, saying it was forced “to liquidate and/or cancel parts of the physical book and liquidate some long-held speculative positions.”

Ebullio has waived its management fee for the remained of the year.

The monumental losses are certainly new for Ebullio, which debuted in 2008 with US$4 million. The firm soared 92% its first year and returned another 29% last year, before giving it all back and more over the last two months.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.