Posted on 06/02/2009 7:38:28 PM PDT by Flavius
Two prominent Boston money managers are winding down their biggest funds, another sign of the relentless shakeout in the hedge-fund industry.
James Pallotta, who runs the $800 million Raptor fund, has decided to return money to outside clients, people familiar with the matter said.
George Noble, a former mutual-fund manager who controls some $550 million across two funds named Gyrfalcon, intends to refund clients this month. He described his 2009 performance in a letter to investors Tuesday as "the most professionally disappointing and personally frustrating of my entire career."
(Excerpt) Read more at online.wsj.com ...
In plan English, people have gotten wise to the house drag and have opted to not let us party on their funds. LOL
Not necessarily. People are free to withdraw there funds any time. Sometimes fund managers just decide the current market doesn't support a strategy they may have succeeded with before. So they give the money back rather than lose (or lose more of) it. It's the honorable thing to do.
ROFLOL!!!
Why’s that so funny? I worked for a manager that did exactly that. His strategy was based on volatility. In 2005 there just wasn’t much of it. So he returned $250,000,000 to investors and moved on with other ventures. What’s so unbelievable or funny about that?
My opinion is they are one step from pimps. Hedge funds, gambling, belongs in Vegas.
You've bought the propaganda from folks like Obama. The reason the word "hedge" is in there is that many of their plays are hedged with underlying assets or another instrument that will minimize risk. Many are employ strategies that are actually quite low risk and do best in volatile markets no matter the direction. A number of them have done much better lately than supposedly diversified mutual funds because they can profit it a down market as well as an up one. Of course unless you have a couple million to invest you can't join. But life is full of opportunities reserved only for those with a few extra million.
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