Well-Mannered Hedgie Sorry for Ruining His Fund

Jan 22 2015 | 7:06am ET

Hedge fund manager Owen Li sent a letter to his investors and apologized for losing nearly 99.8% of their money in nine months by acting “overzealously,” according to CNBC.

Li’s fund Canarsie Capital had managed nearly $100 million in assets last March. But by early this year, that figure had dwindled down to roughly $200,000.

In the letter, Li told investors that he was “truly sorry.” He explained that in the last three weeks, he had made a number of very “aggressive transactions” to compensate for poor returns in December. This included a number of options positions that were speculating heavily on a broad rise in the markets.

When the markets turned negative, the losses compounded.

“My only hope is that you understand that I acted in an attempt — however misguided — to generate higher returns for the fund and its investors,” Li wrote in the letter. “But even so, I acted overzealously, causing you devastating losses for which there is no excuse.”

Li had previously worked at Galleon Group, a now defunct shop run by convicted insider trader Raj Rajaratnam.

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