MJT

Peter Thiel's Hedge Fund Troubles

That is not what did him in at all; that Bloomberg reporter should be fired for doing such sloppy work. Clarium's losses in October were from equities, not bonds. The bond position was established later in the month, after the losses on equities had already been taken, and the bonds were not responsible for the losses. The 4.4x leverage is also erroneous - the leverage varies tremendously depending on what kinds of positions the fund has on at any given time; at a particular point in time it could be 4.4x if there are more lower-risk relative value bond positions, but when there are more volatile directional positions in commodities and stocks then the leverage is much lower than that.