The Perils of Premature Victory Laps

by: Greg Newton

Things are very volatile at this point. That’s why we’re having a good month. We’re hoping we’re finally on the right side of these trends.
That was John Henry in the Boston Herald Aug. 21 celebrating a 15 percent intra-month gain in his firm’s Financial & Metals Portfolio.

The Market Gods were not pleased: F&M spat up most of that to finish up just three percent, taking the International Foreign Exchange program down more than 16 percent and wreaking less dramatic havoc in the Global Diversified—down 8.7 percent—and GlobalAnalytics—down 7.8 percent—programs.

The flagship Strategic Allocation Program lost an estimated 1.9 percent.

Investment losses, an estimated $15 million in redemptions and $30 million in downward revisions to Jul. 31 estimated assets under management, combined to wipe almost 15 percent off John W. Henry & Co’s bankroll. Its Aug. 31 estimated assets now stand at just $432 million, or a quarter of the end-2006 figure.

Earlier on NakedShorts:
Henry celebrates intramonth 15% gain
Aug. 22 2007