fatpitch2

Hedge Fund Redemptions May Crash Q1 Markets

I guess I wonder what is left to redeem?

Tudor Investment Group had $5.7 billion invested at June 30 as disclosed in its 13-F. Its September 30 filing shows only $453 million.

Atticus Capital, another much-celebrated hedge fund, went from $8.1 billion to $510 million.

SAC Capital, run by the Steven Cohen, went from $14.4 billion to $7.7 billion.

Vinik Asset Management, led by Jeffrey Vinik, who once ran Fidelity Magellan, went from $11.8 billion to $1.8 billion!

These numbers are as of September 30. So they do not include the awful months of October or November, so current assets at these funds would be even lower now, but if you are already down 90% .... who cares?

The reduction is of course the combination of selling to meet redemption requests, and a decline in market value of existing positions, if these funds are anywhere close to "typical" I have to conclude that downward pressure on the market on a go-forward basis has got to be minimal as ... well as they are all pretty much out of money....?

1929 All Over Again?

ABG:

I agree with your outlook, and I am very distressed about the future ... esp. for my kids. If you do not mind disclosing some details... how are you structuring your portfolio ST & LT in an attempt to ride this out?

Thanks!