Omega Advisors Drops 3.57% in January

Feb 10 2015 | 3:00pm ET

Omega Advisors' Leon Cooperman called his fund's 2.13% loss in 2014 “embarrassing” in a recent letter to investors. Unfortunately, the fund fared even worse in January.

Omega Advisors lost another 3.57% last month, extending its struggles after a lackluster 2014.

In a letter to investors, Cooperman didn’t mince words in describing his disappointment. "We are disappointed by our 2014 performance, both in absolute terms and relative to relevant equity-index benchmarks," he wrote. 

Among its worst 2014 calls, Cooperman said the firm didn't anticipate crude oil prices falling from $110 per barrel to $60 per barrel in the final quarter of 2014. "Clearly, we missed the mark with our energy call,” he wrote. “Our supply/demand assessment did not signal the extent of the oil-price correction."

In addition to its energy misfortunes, the company has suffered losses in Sprint Corp. and Monitise, a British software company whose stock has fallen 75% since last year. The company also has a large stake in Altisource Portfolio Solutions, whose struggling client Ocwen Financial has seen its stock drop by more than 80% in 52 weeks. 

Despite the downturn, Cooperman drew a baseball analogy to express his optimism in for the future. "Our 2014 performance was embarrassing and we failed to deliver acceptable returns. But while we clearly lost the sprint, we are confident that we will continue to win the marathon and provide attractive investment results over a relevant investment time-horizon. Our only solace is our long term record of outperformance and the knowledge that the greatest baseball hitter of all time, Ted Williams, struck out 709 times out of 7,706 plate appearances, but was the last player to hit over .400 and had a lifetime batting average of .344."


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