Tuesday 13 July 2010

Hot hands...

FT Newsmine reported last week that even the top fund managers found it very difficult in recent months not to accumulate huge losses:

"John Paulson – one of the world’s most prominent hedge fund managers – has suffered a second consecutive month of steep losses for his flagship hedge funds, most of which are heavily geared towards a recovery in the US economy. Amid volatile stock markets, the $3bn Paulson & Co Recovery fund, which has large positions in US banks such as Citigroup and Bank of America, lost 12.39 per cent in June, according to an investor in the fund.""The loss comes on top of a 9 per cent loss sustained in May when markets were convulsed by a series of shocks including the eurozone sovereign debt crisis and the so-called 'flash crash' in US equity indices. The recovery fund is still up on the year, however, after strong performance in the first quarter.""The $9bn flagship Paulson & Co Advantage fund lost 4.4 per cent in June, and is down 5.8 per cent in the year to date. Mr Paulson’s Credit Opportunities fund – which delivered 340 per cent returns in 2007 thanks to huge short positions against subprime mortgage instruments – was meanwhile down 0.9 per cent in June. Mr Paulson’s gold fund – set up barely a year ago – returned 7.3 per cent last month, however, and is up 13 per cent this year."

No comments: