Kynikos Suffers 14% Drop In 2013

Feb 10 2014 | 11:43am ET

Short-selling was bad business last year, when stocks soared. Unfortunately for Kynikos Associates' founder James Chanos, it is the business he's in.

New York-based Kynikos' Opportunity Fund fell 14% last year, its worst annual performance in at least a decade, The Wall Street Journal reports. The huge decline was also Kynikos' second-straight losing year; the fund fell by less than 1% in 2012.

The last two years have been an abrupt change for Kynikos, which enjoyed double-digit gains in four of the previous five years.

The Standard & Poor's 500 Index rose 32% last year, catching short-sellers like Kynikos off-guard. But in spite of last year's big loss, the hedge fund manager remains bearish, telling investors at a Morgan Stanley hedge-fund event last month that he remains skeptical of Chinese real-estate developers and of coal-related investments. Chanos is also still short Caterpillar—one of his few successful shorts last year, but a stock that has posted gains this year.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.