Some Hedge Funds Are KILLING It This Quarter
I’ve spoken to a variety of Hedge fund managers and traders this week who have been ridding this market up and down.
Consider this one Connecticut hedge fund manager I speak with regularly:
On the long side, he is heavy into gold mining and high quality multinations; On the short side, he’s been betting against large American and European Financials, Consumer Discretionary, Home Builders and Cyclical Semis.
Over the past month, we have been discussing the Economy, the Fed, the Markets and specific sectors. As to his own holdings performance, he writes:
“The performance this month is volatile to say the least: Daily returns this week, if monthly, would be too volatile for almost everybody out there. Monday: +8.2%. Tuesday: -3.8%. Wednesday: +5.5%. And not over yet. Get me some Dramamine.
Thursday (8/11) -4.09%; Friday (8/12) -0.89%; Mon (8/15), 1.67%; Tues (8/16), 1.1%; Wed (8/17), 0.82%; and Thurs (8/18), 5.32%. Numbers are gross, in more ways than one.”
-July, the fund was up +10%
-August (to date) is plus 23.7%; Quarter (to date) 33.3%.
Prior to the July/August period, the fund was down high single/low double digits.
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August 19th, 2011 at 11:42 am
Hooray for him.
August 19th, 2011 at 11:43 am
Must find my “Dow 10,000″ hat. Again!
August 19th, 2011 at 12:10 pm
Tell me what they’re doing now, today
…and then next week we’ll LOOK BACK and see how well they’re doing.
August 19th, 2011 at 12:30 pm
And on the other side of those trades…
August 19th, 2011 at 12:38 pm
It’s likely this fund’s size is in the hundreds of millions of dollars, not billions.
An entity that is this nimble in such a short time frame suggests a moderate scale, as it’s tough to trade large scale swing positions without moving or actually becoming “the market” for that stock or sector.
August 19th, 2011 at 12:41 pm
Name please – ?
~~~
BR: LOL That’s not allowed! You absolutely cannot do anything thought of as public advertising or marketing of a private partnership (ie, Hedge Fund).
August 19th, 2011 at 12:45 pm
[...] Not every hedge fund is getting crushed this month. (Big Picture) [...]
August 19th, 2011 at 1:36 pm
If you bet heavy (with 10 x leverage) on red and red comes out – you win a lot of money.
August 19th, 2011 at 1:53 pm
grrrrrrrr. just raise their taxes and i’ll be happy
August 19th, 2011 at 2:13 pm
I’ll join the sour grapes by observing that it’s likely some hedge funds are killing it in any given quarter.
August 19th, 2011 at 2:21 pm
Just an outsider’s question. Who the F is going long on “Consumer Discretionary, Home Builders”?
August 19th, 2011 at 2:27 pm
Just heard Maryann Bartels ML/BAC say it will be tough times for financials for 5 to 7 years on Bloomberg radio, she’s going to get shipped to Canada like Rosenberg for that sort of negative thinking.
August 19th, 2011 at 3:29 pm
thats what i would call a real hedge fund and a quality guy
but there are many flavors –sure you know’
the machine traders no doubt made money at expense of rest of us
the Credit product hedge funds and the like are basically just lying about their mortgage etc assets
asset backed my ass
but let me ask you
how do you judge the accounting of any of these guys and esp “credit” hedge funds?
August 19th, 2011 at 3:53 pm
this is about as useful as the posts on cars and the hamptons.
August 19th, 2011 at 4:55 pm
>> On the short side, he’s been betting against large American and European Financials, Consumer Discretionary, Home Builders and Cyclical Semis.
What about Kitchen Equipment, like the kitchen sink?
August 19th, 2011 at 5:31 pm
And they wonder why the volume is so light. Do mom and pop want to go up against algorithms and hedge funds? I sure as hell don’t.
August 19th, 2011 at 7:52 pm
I’m surprised by all the sour grapes. Is this not a financial/investment site? I am, therfore, afraid to admit that I too am having a very good month for many of the same reasons plus VXX. The only long equity positions I hold are in EM and Asian growth, positions which are there for the long term and to which I am steadily adding as prices come down in response to “The Western crisis”.
August 20th, 2011 at 3:00 am
OK, let’s increase Mr. Hedge Fund Manager’ taxes so that his marginal tax rate is at least equal to Warren Buffett’s secretary, unless he somehow manages (pun intended) to somehow slip thru IRS’ fingers.