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Do A Lot Of Hedge Funds Bounce Back From 86 Percent Losses?

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I'm not asking for myself, I'm asking for Ebullio Capital Management, and its founder, Lars Steffensen. In February the commodities fund took a 86 percent hit, after declining 70 percent in January, and YTD, is down 96 percent. Investors are forming a disorderly line for the exits. From the outside in, things look ass-bleedingly bad. But it's cool! Lars is not stressing. People come back from this sort of thing all the time, Lars included.

“Extraordinary circumstances” forced the fund “to liquidate and/or cancel parts of the physical book and liquidate some long-held speculative positions, mainly in LME non-ferrous metals,” Ebullio founder Lars Steffensen wrote in the report, referring to the London Metal Exchange.

“We took the hit,” Steffensen, 42, said by phone today, confirming the contents of the letter and declining to elaborate. “I’ve always bounced back,” he said.

The fund is waiving its 2 percent management fee for 2010.

So, anyway, like I said, I'm polling the group so we can give Lars an accurate picture of whether or not this is feasible. Do bounce backs like this happen all the time? Looking for hard data and/or total guesstimates.

Ebullio Hedge Fund Fell 86% Last Month on Metals Loss [Bloomberg via BI]


Hedge Fund Manager Wants 35 Percent Of Ex-Wife's Shoe Collection For Reasons Not Entirely Clear

Daniel Shak is the founder of SHK Management, a hedge fund that reportedly "pulled the plug on its sole investment, spread trades on Comex gold futures," last year. Daniel Shak is also the ex-husband of Beth Shak, who he divorced three years ago and is now suing for allegedly hiding assets in an attempt to cheat him out of settlement money. The assets in question? Twelve hundred pairs of designer shoes, which Shak claims his former wife "hid" from him in a "secret room." The way DS sees it, the footwear collection, which includes "Christian Louboutins and other high-end designer shoes" is worth approximately $1 million and he wants at least 35 percent. The way Beth Shak sees it, this is crazy (“I’m shaking my head over this whole thing,” she told reporters. “He is saying he didn’t know the closet in our master bedroom existed") and she doesn't understand why her ex is going after her shoes now. At this time there appear to be a few possible explanations: a) Daniel is raising money to re-launch his fund (he told the Journal, after liquidating SHK in January 2011, that he'd be "trading again in a few weeks," though it's unclear if that happened). b) He's got gambling debts to repay ("A poker lover himself, he was reached at a card table yesterday but declined to comment"). c) He and John Mack are going to sell them out of the back of a truck. d) He just really appreciates women's shoes. e) Other Hedgie sues poker pro ex-wife over her 1,200-pair designer shoe collection [NYP] Related (...?): Hedge Fund SHK Liquidates, Rattles Gold Market