HowardOnly 56 Made Money; Panic in the Hedges
They have to die. Let's have the governments of the world put them out of their misery and have a conference to do it in an orderly manner. The Hedgies have to die. Everyone hates them, they are evil. Their one reason to exist is that they make money, now 80-percent of them don't even do that. With the real estate and associated MBS bubble going down more, it's time for the New Bretton Woods Conference.
SAC Capital, the world's most expensive hedge fund manager, joined the majority of hedge funds that lost money in early August, with its multi-strategy fund falling 6%.
Investors estimated fewer than three hedge funds in 20 had made a profit in the first two weeks of the month. The losses challenge the claim that hedge funds can make money regardless of market conditions.
SAC, a US firm that charges a performance fee of 50% on any gains and management fees of 3% a year on the $13bn (€10bn) of assets it runs, recorded a 6% loss in the first two weeks of August, according to an investor. SAC declined to comment.
The firm has generated a net investment return of 43% a year since its launch in 1992, investors said. It has moved into private equity and is expected to buy Taiwanese credit card issuer Cosmos Bank.
Rival hedge fund managers said SAC's failure to avoid losses during early August's market turbulence reflected the severity of conditions. A partner at one firm said: "It has been savage out there; things are happening that are completely illogical. Convertible bonds should have become more expensive but they have got cheaper, and it is because people have been selling good positions as well as bad."
Investors said that of 392 hedge funds that had reported results in the first two weeks of August, only 56 had made money. The investable hedge fund index published by data provider MSCI fell on 13 of the first 15 business days of the month, recording a loss of 3.36% to August 21.
for the whole story, Really Long Link
SAC Capital, the world's most expensive hedge fund manager, joined the majority of hedge funds that lost money in early August, with its multi-strategy fund falling 6%.
Investors estimated fewer than three hedge funds in 20 had made a profit in the first two weeks of the month. The losses challenge the claim that hedge funds can make money regardless of market conditions.
SAC, a US firm that charges a performance fee of 50% on any gains and management fees of 3% a year on the $13bn (€10bn) of assets it runs, recorded a 6% loss in the first two weeks of August, according to an investor. SAC declined to comment.
The firm has generated a net investment return of 43% a year since its launch in 1992, investors said. It has moved into private equity and is expected to buy Taiwanese credit card issuer Cosmos Bank.
Rival hedge fund managers said SAC's failure to avoid losses during early August's market turbulence reflected the severity of conditions. A partner at one firm said: "It has been savage out there; things are happening that are completely illogical. Convertible bonds should have become more expensive but they have got cheaper, and it is because people have been selling good positions as well as bad."
Investors said that of 392 hedge funds that had reported results in the first two weeks of August, only 56 had made money. The investable hedge fund index published by data provider MSCI fell on 13 of the first 15 business days of the month, recording a loss of 3.36% to August 21.
for the whole story, Really Long Link
