Clive, JAT Down Big In Oct.; Third Point, Greenlight Post Gains

Nov 3 2011 | 9:57am ET

Clive Capital's turnaround didn't last long.

The US$4 billion London-based commodity hedge fund posted an 11.4% jump in September, erasing its year-to-date loss. But Clive reverted to its earlier 2011 form in October, dropping 7.8%, Bloomberg News reports.

Most of the losses, which left Clive down 7.4% this year, came during the last week of the month, as the Standard & Poor's 500 Index capped a month-long rally to end October up 11%.

Clive wasn't the only one suffering. JAT Capital Management stopped reporting its monthly performance figures to HSBC Private Bank just in time: The US$3 billion fund, up some 31% through September, lost more than half of those gains last month. The New York-based firm's flagship shed 14% through Oct. 28, leaving it up 13% on the year.

JAT was battered by its big investment in Netflix, whose share price plummeted last month after it announced it had lost 800,000 U.S. subscribers. What's more, JAT's market-neutral stance and shorts, which helped it post huge returns through much of the year, turned against it during last month's market rally.

Some prominent hedge fund managers did achieve positive returns last month. Third Point's hedge funds rose between 0.8% and 1.2% on the month, missing out on the rally due to founder Daniel Loeb's cautionary stance. Three of Third Point's funds are in the black on the year, returning between 0.6% and 0.9%, while its Ultra Fund remains down 1.3%.

Loeb's buddy, David Einhorn, did even better, although not as well as the S&P 500. Einhorn's Greenlight Capital's Offshore Fund jumped 7.8% last month, pushing it into the black on the year at 1.3%.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note