Clarium Down 23%, Third-Straight Down Year

Jan 12 2011 | 1:40pm ET

Clarium Capital Management’s Peter Thiel has gotten a lot of things right in his life. But over the last two years, his hedge fund can’t seem to get anything right.

The San Francisco-based firm lost 23% last year, according to published reports. The hedge fund’s third-straight losing year means that clients who have stuck with the firm since the middle of 2008 have seen two-thirds of their assets evaporate.

Of course, very few investors have done so: Clarium, which managed more than $7.2 billion two-and-a-half years ago, now manages less than $700 million, a 90% decline.

Thiel shook up Clarium this year, trying to shake off last year’s 25% drop and earlier year troubles. He moved the firm back to San Francisco less than two years after moving it to New York and imposed new risk management measures. It didn’t work: The firm was down just 6% through May.

Still, for investors who have been with Thiel since the beginning in 2002, things aren’t all bad. The fund has returned an annualized 12% since inception.

Despite last year’s troubles, Clarium is sticking with Thiel’s bet that the economic recovery will falter, pushing 30-year Treasuries up.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.