Saturday, 25 October 2014
Last updated 1 day ago
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%.
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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.