Hedge Fund Richary Perry

[corydorus]

Quite Amazing they can lose 18% (corrected from 40%) of client money !

"Richard Perry will shutter his hedge-fund firm after billions of dollars in investment losses and client defections."

http://www.marketwatch.com/story/richard...2016-09-26

[weijian]

It's not as amazing if LTC can lose 4.4 out of 4.7billion capital (93%) in 1998. It remains the industry benchmark I would say!

http://www.businessinsider.sg/the-fall-o...f4yBPxS.97

[Clement]

The fund did not lose 40% of client capital. It lost 18% since the end of 2013 in investment performance and client redemptions accounted for the rest of the loss in assets under management.

It is very difficult for a investment fund to make money when your limited partners are asking for their money back. The fund will be forced into a cycle of liquidating positions and moving prices against itself, which causes more redemptions and hence more selling.

As for the benchmark, I don't remember any names off the top of my head, but I think there have been some hedge fund failures where investors lost 100% of their money.

[corydorus]

You are right. I have it corrected to 18%.

[opmi]

When u lose money for clients, they don't care if you made them tons
Of money previously. It is a thankless job.

When u have enough capital, just return outside money and
manage your own. Like Joel Greenblatt, Michael Price, Mike Burry. No need to be anyone bitch.

[Clement]

When u lose money for clients, they don't care if you made them tons
Of money previously. It is a thankless job.

When u have enough capital, just return outside money and
manage your own. Like Joel Greenblatt, Michael Price, Mike Burry. No need to be anyone bitch.

Well, providing investment advisory services as a business is like this. In the end, investors are investing in a fund for the value they expect the manager to bring in the future and not value the manager has brought in the past. In good years, the manager gets to collect very nice fees and the money is probably reward enough.

A hedge fund management company itself is a business and has a value to it, just like ARA for example. If all outside money is returned, most of the value in the management company is lost. For some founders, they have indeed gone that route like Soros, Druckenmiller and those you have mentioned. However, there are others who wish to continue trying to grow the business to increase the value of the management company.