Hedge funds face serious trimming

Crain – For years, Dan Loeb was the hedge fund world’s hanging judge, firing off blistering letters to hapless chief executives that condemned them for their shortcomings.

“Do what you do best,” he hissed in a 2005 letter to a soon-to-be-gone CEO. “Retreat to your waterfront mansion in the Hamptons. … The matter of repairing the mess you have created should be left to professional management.”

How times change. After years of posting average gains of 27%, Mr. Loeb’s Third Point hedge fund crashed to earth last year with a shattering 33% loss. In response, many investors grabbed their money and ran, driving assets under management to less than $2 billion from more than $5 billion previously. Now it’s Mr. Loeb who’s left to clean things up—or face oceanfront exile.

Read Complete Article

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in Syndicated and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

Comments are closed.