It’s been nearly a year-and-a-half since John Burbank begged Janet Yellen to torpedo the economy so that people like himself could start making money again. Not only has she not obliged, but now she’s going away because the biggest recession trigger in history is pensioning her off—while simultaneously failing to bring about Burbank’s hoped-for massive economic downturn because nothing makes any sense anymore. Except for one thing: As a result of this annoying period of prosperity, Burbank’s Passport Capital has been losing money hand over fist for the better part of two years now. And so he’s doing the sensible thing and shutting down his flagship.
Mr. Burbank wrote to investors Monday that “returns over the past two years are unacceptable and cause me to rethink how to manage money in this environment.”
“You will not hear about Passport shutting down -- there is too much opportunity available to do that,” Burbank wrote, adding that the firm may announce a new area of investment in the near future.
Well, it hasn’t taken Passport long to find that new area, and you’ll never guess what it is. No, wait, of course you will.
Mr. Burbank’s San Francisco-based hedge fund Passport Capital plans to pull back from much of its traditional macroeconomic trading in assets like stocks and bonds and launch a new arm that focuses only on cryptocurrencies such as bitcoin, according to people familiar with the plans.
Passport Capital to Shut Flagship Hedge Fund After Losses [WSJ]
Passport to Shut Global Hedge Fund After ‘Unacceptable’ Returns [Bloomberg]
John Burbank’s Passport Hedge Fund Hopes for New Savior in Bitcoin [WSJ]
SEC Chairman Warns Investors Against Bitcoin [WSJ]
The Force Behind Bitcoin’s Meteoric Rise: Millions of Asian Investors [WSJ]