Friday, 24 October 2014
Last updated 2 hours ago
Sep 2 2011 | 11:45am ET
This year, Labor Day weekend will offer a much-needed reprieve for the many prominent hedge fund managers to suffer losses during a brutal August.
Greenlight Capital, Pershing Square Capital Management, SAC Capital Advisors, T2 Partners and Third Point all suffered drawdowns last month—to say nothing of one of the industry's biggest losers, Paulson & Co. None of the aforementioned is in as bad a shape as Paulson, whose main hedge funds were down between 25% and 37% through the end of last week. But none are likely to toast to the eighth month of 2011 this weekend, either.
Buddies William Ackman and Whitney Tilson seem to have come closest to matching Paulson's misery. Tilson's T2 told investors that its fund lost 13.9% last month and is down 22.1%. Pershing Square's losses are unclear, but the New York-based fund was down by double-digits earlier in the month and shares many investments with T2—investments which did not do well.
"Our portfolio got clobbered across the board despite generally good company-specific news regarding our major holdings," Tilson wrote.
For their parts, SAC dropped about 3% on the month, Reuters reports, leaving it up about 7% on the year. Third Point shed 2.8% to cut its year-to-date return to 3.9%, while Greenlight extended its 2011 losses in August with a 1.4% decline, leaving it down about 5% on the year.
Things weren't much better across the pond, with both Lansdowne Partners and Odey Asset Management nursing big losses. The former's U.K. Equity Fund was down 18.6% on the year through the middle of last month while its Global Financials Fund was down 1.37% though Aug. 19, Bloomberg News reports. Odey's European Fund lost 15% through Aug. 12.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...