Drake Shutters Fund, Retains Modicum Of Integrity

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Drake Management said in a letter yesterday that it will wind down Global Opportunities, its $2.5 billion flagship fund. After returning 41 percent in 2006, GO lost 24 percent in 2007, and another ten percent by mid-March of 2008. Interestingly, after the losing of the money thing started, Drake took the rather unorthodox approach of asking investors what they wanted to do (keep going or pull the plug), instead of unilaterally deciding to suspend withdrawals, not showing remorse, saying 'Why did we lose your money? 'Cause fuck you, that's why. Deal with it and quit your bitching,' as other firms are wont to do. And that sort of seems fair? Democratic? The right thing to do? Drake said the fund will be wound down over the next year (after failing to secure enough support to keep the thing going), and a follow-on fund will be launched for those who want to give it another go.
Drake to Shut Its Largest Hedge Fund, Plans New Fund This Year [Bloomberg]

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