even a good hedge fund could go down

Discussion in 'Wall St. News' started by trader2000, Jan 12, 2009.

  1. just goes to show that even when making a smart bet a fund could go under. thats great that they made that bet in 2007 but in the market,what matters is what you are doing today.

    Harbinger Capital imposes limits on withdrawals - FT

    FT reports Harbinger Capital, the activist US hedge fund headed by Philip Falcone that shot to fame in 2007 with a lucrative bet against subprime mortgages, joined the list of funds restricting withdrawals for investors a day before the end of last year, according to two investors. Harbinger's main fund rose almost 43% in the first six months of last year but lost all its profits and ended the year down 27.1%. After redemptions and losses, the fund now manages about $6 bln, one investor said, down from a peak of almost $20 bln last summer. Investors seeking to redeem their funds will have 37% of their money withheld in a special vehicle by Harbinger until hard-to-trade underlying assets can be sold. Another 2% of the fund is stuck at failed bank Lehman
  2. cvds16


    this ain't a good hedge fund, otherwise they wouldn't be losing this much.
  3. tradersboredom

    tradersboredom Guest

    his clients are low in cash, they will close all long and short positions.

    these funds make make their money on size of hedge fund or how many clients they have.

  4. tradersboredom

    tradersboredom Guest

    these investors(market participants) know the rules of the hedge fund when the signed on.

  5. piezoe


    I don't know of any hedge fund that is a good hedge fund. So far as i am aware they all leverage their positions and try for unreasonably high returns. This they are happy to do with other peoples money. A return of 43% is a sure sign of trouble down the road. Any return above 20% is, in my opinion, a sign that too much risk is being taken.
  6. tradersboredom

    tradersboredom Guest

    depends on the size of your portfolio

    a portfolio under 1 million can easily or should make 50%/year.

    a portfolio over 5 billion as a single portfolio unrealistic or expect over 25% realized gains.

  7. timmyz


    just another manager who buys illiquid securities so he can mark the value those securities himself and post phony returns.

    a phony. nothing more.
  8. punk, when you move out of your mothers basement, let us know