Jackpot! Why 5-Year Lock-Ups Are a Great Idea

The two-year-old hedge fund founded by Jonathan Wood, a former UBS AG trader, is down about 85% from its inception through July, according to a person familiar with the matter.

Mr Wood, known as an outspoken investor, has seen his investments in several high-profile casualties of the global financial crisis sour including Bear Stearns Cos, Countrywide Financial Corp (CFC), and UK bank Northern Rock (NHRKF.PK)...

SRM declined to comment on
the fund's performance.

Wood still has three years to make the 600-odd percent it will take to get his investors back to even.

Hedge Fund Suffers Sharp Losses

by Cassell Bryan-Low

The Wall Street Journal Aug. 14

Comments

[User 244491:]

His fund still looks good compared to the likes QVT Financial LP in New York who lost all 1$ billion last month from 3$ billion given to them in 2005.
QVT Financial LP is liquidating with biggest losses coming from going short commodities last year and going long last 2 months.Add here leverage as a spice and you can imagine what leverage average hedge fund uses.NEVER INVEST IN HEDGE FUNDS.

2008 Aug 17 12:48 PM