Despite the fact that he is a rolly polly ball of smiles that had the good sense to sell his hedge fund to Citi for a billion dollars, as the CEO of the Treasury’s special needs child, Vikram Pandit does not have a lot to look forward to, other than the day he “makes more than $1.” So when the word got out several weeks ago that he was going to have the opportunity to meet one of his idols, he got pretty psyched Naturally, the idol I speak of is Mr. Jay-Z. Read more »
Viking Global Is Greatly Disappointed In Its Returns, Not Blaming Self, But Still Looking Within To See What Went WrongBy Bess Levin
To: Viking Investors
From: O. Andreas Halvorsen
Our second quarter performance was a loss of 5.0% for VGE and a loss of 11.9% for VLF net of all fees on a composite basis
On an unlevered basis, VGE’s long portfolio was down 11.2% and the short portfolio was down 10.3%, yielding a long-short spread of negative 0.9% (see the attached Base Case Analysis). In the quarter, five long positions cost us 0.5% or more while no short contributed an equal amount.
We are greatly disappointed in Viking’s returns both on an absolute basis and relative to the indices. We do not blame factors outside of our control, but acknowledge that changes in the global macro-economic, political, and regulatory environment; a broad-based fall in stock prices around the world; and unusually high levels of correlation among these prices have increased the degree of difficulty in generating a profitable long-short spread. We are paid to deal with such challenges at all times and are in a business that requires hard work and consistent processes every day. When the market gives us a disappointing score for our efforts, we examine our results and our methods to ascertain whether we need to make adjustments – this is the Viking way. Rest assured that our objective remains to achieve maximum capital appreciation commensurate with reasonable risk, and we remain firmly dedicated to meet this goal. In light of this, we have engaged in a thorough examination of our results.
He’s letting the homeland down. And, really, that’s so much worse.
The Indian presence is almost evenly divided among the private and state-run companies. While none of the Indian companies has managed to find a place among the top 100 firms this year as well, the elite club includes a firm run by person of Indian origin.
Lakshmi Mittal-headed steel behemoth ArcelorMittal is at 41st position. However, Vikram Pandit-run banking giant Citigroup has dropped to 472nd rank this year.