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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...