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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note