Hedge Funds

How-to-Write-a-Formal-LetterIn the grand tradition of hedge fund letters to clients informing them that the money they invested is pretty much all gone, many a manager has a difficult time doing a credible rendition of an apology. Even if the words “apologize” or “sorry” actually do appear on the page, they’re typically followed by 1) A positive spin such as “Your one dollar at the beginning of this year is now 4 cents!” and 2) Long paragraphs about how outside forces lost the clients’ money, or how, sure, it’s been an annus fucking horribilis but there are still 14 trading days left on the calendar to turn it around, or how the ass bleeding the fund has suffered is strictly due to the market’s ridiculous mispricing of equity and in no way the investment theses of those in charge. So when a hedge fund manager actually sounds like he really is sorry about incinerating his clients’ money? It feels like you’ve got to give him a least a smidge of credit, relative to his peers. Sure, he bet big and lost it all, but he feels bad about it! Grading on a curve, that’s something. Read more »

John Paulson Has A Plan

Does this guy look worried?

Does this guy look worried?

Investors in Paulson & Co.’s Advantage funds did not have a great year. It wasn’t quite 2011, but a 36% loss in no less unpleasant just because you suffered a 51% loss three years earlier.

On the other hand, losing 51% and surviving—nay, thriving—does mean that a 36% loss won’t necessarily kill your confidence. And old J.P., he’s as confident as ever, and has a message for those who lost 36% with him last year or who are having second thoughts about investing with him this year on account of said loss: Read more »

  • 16 Jan 2015 at 5:00 PM

Hedge Fund Lawyers Make Bank

Total cash compensation for general counsels at most hedge fund managers tends to range between $500,000 and $2 million. The average total cash package for a general counsel is close to $1.1 million. There are outliers at the top end of the range, however, and I know of several GC’s earning well north of $3 million.

This is welcome news for in-house counsel at the larger, more complex and better performing hedge fund managers. Read more »

Stealing From Ken Griffin For Three Years In The Joint

griffinAlthough ex-programmer Yihao Pu’s lawyer argued that her client was “guilty only of being an immature young man,” ripped Citadel off for a mere $2,000, and really didn’t need to do jail time, a judge saw things differently, on all counts. Read more »

Can you believe these hedge fund guys back here with whom I have no association?

Can you believe these hedge fund guys back here with whom I have no association?

Let’s get one thing straight. Pershing Square is not a hedge fund. And Bill would appreciate it if you’d stop describing it as thus. Read more »

steve cohenObviously the caveat here is that you probably can’t have been convicted of securities fraud but hey, at this point, it’s better than one would’ve expected*! (*What one would’ve expected, obviously, is that having SAC on your résumé would be like having a giant scarlet ‘S’ on your chest.) Read more »

Were You In The Right Hedge Funds This Year?

Pret-tay pleased with himself.In a word, no. Unless you’re a Pershing Square client or went in really big on Indian hedge funds and other vehicles run by people you’ve never heard of. Read more »

John Paulson Has Had Better Days

Between a rock and a hard place.Also better weeks/months/years. Read more »