READ NOTHING INTO THIS MAN'S FAVORITE FILM.
What do you say about a hedge fund that loses 96% in two months? Usually, that there isn’t a third month. That lesser losses have taken down bigger game. That anyone would be crazy to keep their money with such an outfit.
Well, Ebullio Capital Management isn’t your average hedge fund that lost 96% in two months. In fact, as far as we can tell, it is unique, in that the individual hedge fund that posted the loss survived for another three years, and that the firm continued on—with big plans for a $125 million quant fund as recently as last month, per this interview that is remarkable for the absence of any question including the term “ass-ripping loss” or its equivalent—with $250 million in assets until this very day. Alas, this very day is its last.
Ebullio is going out of business after failing to meet capital adequacy and compliance requirements.
Or, as firm founder Lars Steffensen put it:
“It’s just not fun being a hedge fund manager any more”, citing a tough capital raising environment.
One imagines that all capital-raising environments are tough with back-to-back 70% and 86% monthly losses on the back of your baseball card, but today is not a day to quibble over such things. OK, maybe a little.
Mr Steffensen has stated in the letter to investors that he has been personally supporting the operations of Ebullio financially, however an international order which has frozen his assets was issued in late December.
The Managing Partner of Ebullio claims that the order has been obtained after providing false evidence to the court.
So it’s not just that running a hedge fund consistently into the ground isn’t making Steffensen smile anymore, or that the lack of appetite for any commodity hedge funds—near-total loss makers or otherwise—is an insurmountable headwind. But, good news: If you’re one of the brave souls with money still entrusted to Ebullio, you’ll be getting all of your remaining money back once it consummates this not-at-all-complicated-or-unlikely deal.
In a letter to the investors in the funds Ebullio Invest, Ebullio Return and eFED, the Managing Partner of the company asserted that the value of the holdings of the fund is enough to repay the investors.
That said, selling a mine share physically held in Turkey at a time, when commodity prices continue rapidly declining and in an environment where the country’s President Erdogan is taking an increasingly assertive authoritarian tone is going to be difficult, to say the least.
Breaking: Hedge Fund Ebullio Closing Down as Commodity Investments Turn Sour [Finance Magnates]
Commodities: from Mines to Machine Learning [Finance Magnates]