Tuesday, 21 October 2014
Last updated 12 min ago
Aug 5 2013 | 11:30am ET
A terrible month for two of its largest positions doomed Pershing Square Capital Management to a red July.
The New York-based hedge fund fell 2.2% on the month, Reuters reports. The firm was burned by its $1 billion short bet against nutritional supplements company Herbalife, whose shares soared 40% in July, and its big long bet on retailer J.C. Penney Co., whose shares dropped 17% on the month.
Pershing Square, which manages $12 billion, has suffered at least $300 million in losses on Herbalife, which the hedge fund's founder, William Ackman, has called a "pyramid scheme."
Most of Pershing Square's losses came in the second half of the month, according to Reuters. The hedge fund had been up 2.2% in the first half of July, pushing its year-to-date gains to about 8%.
Two weeks later, its year-to-date gains had been cut to just 3.8%.
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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. 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 ...