Tag: losses

Not a good start to the holiday season for hedge funds

Feet in the flames, or just being kicked while they’re down?

Either way, hedge fund managers across most strategies are getting an earful. Performance (with managed futures the exception, likely due to the distinct downward trend in commodities prices), is getting walloped. High water marks (i.e. having to recover previous losses before performance slices can be paid out) mean many funds will be digging themselves out of their hole for some time to come.

Meanwhile, investors aren’t waiting around to see if traders are good with a spade – they are running in the other direction, at a pace of over $100 billion for October alone. And to add insult to injury, the top dogs are now testifying before Congress – in other words, they are trying to justify their existence to a group of people who barely possess the mental faculties to wipe their own behinds let alone understand how buying a bond while shorting the issuer’s stock leads to price discovery the rest of us schleps can benefit from.

Happy holidays?

Dear Investor…

This letter is to inform you that the wheels have come off of the proverbial wagon at ACME Systematic Leveraged Macro Momentum Fund LP, and that the same awesome thematic portfolio that made you feel (in the first half-year) as if you’d become very rich in comparison to those sucking wind on their leveraged MBS portfolios or Japanese Small-Cap Value Funds, has, quite literally, spontaneously combusted in our faces.

On and on this obvious second-quarter fund form letter goes. Simply hilarious.

(h/t The Big Picture)