Some Hedge Funds really taking it

Discussion in 'Wall St. News' started by Bogan7, Jul 14, 2008.

  1. Man here we go again I was having dinner with mate who runs a big US trading desk last night when he got a call from a broker telling him a hedgefund he deals with had lost 900 mill out of his 3 bill in the last month. No more than 5 mins had past when a diff guy calls and says another fund (actually feel sorry for him as he is a good guy) had dropped 500 mill out of its 2.5 bill in the June. It is getting scary in this space as well, redemeptions could really make this space interesting the only prob is where do you put your cash?
     
  2. Digs

    Digs

    Inverse ETFs da
     
  3. you kno w that parties aren't meant to last.

    harvest hay while the sun is shining.

    the sun is not shining and in sunset now.

    the highly leveraged investors who invest in these hedge funds ar shutting down.

    there is no cash.



     
  4. the party is over.

    everybody is gone.



    [

    QUOTE]Quote from Bogan7:

    Man here we go again I was having dinner with mate who runs a big US trading desk last night when he got a call from a broker telling him a hedgefund he deals with had lost 900 mill out of his 3 bill in the last month. No more than 5 mins had past when a diff guy calls and says another fund (actually feel sorry for him as he is a good guy) had dropped 500 mill out of its 2.5 bill in the June. It is getting scary in this space as well, redemeptions could really make this space interesting the only prob is where do you put your cash? [/QUOTE]
     
  5. spidey

    spidey

    Was just reading the new Fortune, some fund manager interviewed very recently, running something like a 3 billion $ fund, recommended FNM & FRE. These people deserve to be washing dishes. I'm tempted to send the fund my resume, I mean christ I am profitable and know how to pick stocks.
     
  6. the investors who invested the money into the hedge fund is 50% leveraged

    now the hege fund is leveraged another 50%

    so the hedge fund is actually leveraged 25% meaning 75% of the money in the fund is borrowed money!!!!

    the fund only needs to make 25% per year to make 100% return for the investor of the hedge fund.

    if fund drops 25% the investors lose it all.



     
  7. Leverage makes you insanely rich in a bull, and busts you at the speed of light once the music stops.
     
  8. You seem shocked?

    You didn't know that these were mostly punks playing knife catch with opm?

    Better late than never.
     
  9. Its seems none of you get what I was trying to say as you were too busy gloating (why I will never know as most on here have ever worked the industry). The point is.... actually forget it wasting my time here...

    bye
     
    #10     Jul 14, 2008