CNBC has the story of Owen Li, the founder of Canarsie Capital in New York. On Tuesday, he said the hedge fund had lost all but $200,000 of the firm’s capital—down from the roughly $100 million it ran as of late March.
A 99.8% loss in 9 months.
“I take responsibility for this terrible outcome,” Li wrote in a letter to investors, which was obtained by CNBC.com.
“My only hope is that you understand that I acted in an attempt—however misguided—to generate higher returns for the fund and its investors. But even so, I acted overzealously, causing you devastating losses for which there is no excuse,” he added.
Li is a former trader at Raj Rajaratnam’s Galleon Group, which collapsed amid insider trading charges.
Looks like he couldn’t do so well without Raj’s inside info. If you get the chance on the weekend watch the Frontline report on insider trading at Galleon. It’s on Netflix.
Meanwhile, it wasn’t such a great year for the hedge fund titans, despite the 10% rally in the S&P 500. David Tepper who was the best-paid fund manager in the world in 2013, earning a whopping $3.5 billion, revealed his fund was up just 2.2% in 2014.
Another thing that’s interesting to note is that Tepper said if the ECB starts to do QE it will be the beginning of the end of the bond bull market.
