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First Major Expert Network-gate Casualty: Level Global Liquidating

Tyler Durden's picture


David Ganek's $4 billion hedge fund is dunzo. Full liquidation expected by March 31.

Top 25 holdings:


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Fri, 02/11/2011 - 11:27 | Link to Comment PeterSchump
PeterSchump's picture

I see a new market developing in BTFD funds.  Lots of liquidated capital to absorb.

Fri, 02/11/2011 - 11:29 | Link to Comment cswjr
cswjr's picture

Good thing there's an app for that: POMO.


Fri, 02/11/2011 - 11:56 | Link to Comment thedrickster
thedrickster's picture

Oh that's funny.

Fri, 02/11/2011 - 11:28 | Link to Comment NOTW777
NOTW777's picture

what do they have to liquidate

Fri, 02/11/2011 - 11:33 | Link to Comment Dolar in a vortex
Dolar in a vortex's picture

You can see what caused their demise, they only have 538k shares of AAPL.

Had they gone all in on Apple, they'd still be solvent.

Fri, 02/11/2011 - 11:33 | Link to Comment RobotTrader
RobotTrader's picture

He must be retiring.  His top holding is doing very well.

Rest of the portfolio is pretty good, he has GMCR, QCOM, AAPL, SINA, etc.  Most of his stocks have had huge gains this year.


Fri, 02/11/2011 - 11:45 | Link to Comment Astute Investor
Astute Investor's picture

I assume you are unfamiliar with hedge funds.  Carnage in the short book could have easily swamped the performance in the long book. Anyway, I'm sure the FBI probe had nothing to with Ganek pulling the plug.

Fri, 02/11/2011 - 22:41 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Astute Investor,

You're a complete fool! I've allocated to the best hedge funds and have never, EVER, seen "carnage in their short book easily swamping the performance of the long book". Where do you pull this shit out from? Yes, most L/S Equity funds are pathetic on their short book, which is why they prefer being net long, focusing on their long book and trading on their short book. They're mostly long small and mid cap stocks, and short large caps. Ganek's top holdings are excellent (look at JDSU), and he might just be pulling the plug for personal reasons. $4 billion is peanuts...will easily get absorbed.

Sat, 02/12/2011 - 18:18 | Link to Comment Astute Investor
Astute Investor's picture

Leo:  As usual, your logic is non-sensical - long on superlatives and short on facts.  You, Robo, HarryWanger et al all scream everyday about shorts getting "blow-torched" in the current market.  So, there's no reason the performance drag in the short book (think Julian Robertson / Tiger in 2000, T-2 / NFLX in 2011) couldn't adversely affect overall returns at a L/S hedge fund with 200% gross leverage and 30% net.  The old formula of long mid-cap / small cap (i.e beta) and short large cap does not guarantee success and LPs seem to be much less forgiving these days.

Also, you should try to engage in some analysis before making sweeping statements about JDSU and the quality of Level Global's holdings.  The good news - JDSU is up 94% in 2011.  The more relevant fact - Level Global's position in JDSU is approximately $44 MM or roughly 1% of the total portfolio of $4 billion.  Therefore, the impact of JDSU on the entire portfolio, while extremely positive, is relatively de minimus.

I'm guessing your career as a capital allocator was short-lived because of your unwillingness or inability to sweat the details.  My suspicions are confirmed with each and every one of your ridiculous posts / comments.

Fri, 02/11/2011 - 11:34 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Will there be any hangings?

Fri, 02/11/2011 - 11:34 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

meh, 4 bn ain't nothin' no mo....only half a POMO....

Fri, 02/11/2011 - 14:39 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Shaking out the weak players. Someone has to sell stock for the market to continue up. No retail left to do so.

Fri, 02/11/2011 - 11:36 | Link to Comment Zero Govt
Zero Govt's picture

being able to leverage 100/1 ...Priceless

Fri, 02/11/2011 - 11:39 | Link to Comment whatz that smell
whatz that smell's picture

now that dips are more scarce than a red close, it's time to evolve a parabolic strategy and Buy The Fucking Pause.

Fri, 02/11/2011 - 11:41 | Link to Comment Wakanda
Wakanda's picture


Soon there will be no pauses.  QE to infinity ASAP.  Why wait?

Fri, 02/11/2011 - 13:57 | Link to Comment Hephasteus
Hephasteus's picture

This could cause men all pause.

Fri, 02/11/2011 - 11:52 | Link to Comment virgilcaine
virgilcaine's picture

They see what lies ahead.. post pomo..a barren waste land for financial mkts.

Best to get out on top.

Not good sign for these Markets when the big boyz pick up their toys and go home.

Fri, 02/11/2011 - 12:19 | Link to Comment SteveNYC
SteveNYC's picture

What market(s)?

Fri, 02/11/2011 - 11:57 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Gee...what's with all the hedgies throwing the towel in, lately?

Even 30 year vets with good track records are closing shop and refunding invested funds.

I'm sure it's just a passing & temporary phases of money runners wanting to spend more time with their families.

Fri, 02/11/2011 - 12:40 | Link to Comment Joe Davola
Joe Davola's picture

And what are their investors doing with the cash the get returned?

Fri, 02/11/2011 - 14:02 | Link to Comment Apocalicious
Apocalicious's picture

Diamondback is probably next...and then maybe FrontPoint...

Fri, 02/11/2011 - 14:08 | Link to Comment slaughterer
slaughterer's picture

Steve Eisman just bought a new place on Central Park...  He is not doing so poorly.

Fri, 02/11/2011 - 14:29 | Link to Comment Bastiat
Bastiat's picture

Oh cool!  He'll be able to watch the mobs from there!

Fri, 02/11/2011 - 17:28 | Link to Comment Apocalicious
Apocalicious's picture

Oh, his personal net worth isn't the issue. It's his firm's stubborn refusal to acknowledge any issues in the Chip Skowron due diligence/hiring process, poor internal controls and compliance procedures, and massive exodus of institutional investors.

Fri, 05/20/2011 - 15:41 | Link to Comment Apocalicious
Fri, 02/11/2011 - 14:28 | Link to Comment Catherine007
Catherine007's picture

What is the source on this story??

Fri, 02/11/2011 - 20:06 | Link to Comment Buck Johnson
Buck Johnson's picture

People are getting out while the gettings good.  Maybe they know that this game is about to end.

Sat, 02/12/2011 - 04:12 | Link to Comment Buyemall
Buyemall's picture

how can i send an email to zh?

Sun, 02/13/2011 - 10:00 | Link to Comment Narrow Ledge
Narrow Ledge's picture

David had teary eyes as he told his firm... then his firm had teary eyes after getting the shaft with comp. Good thing they have full battery of lawyers camping out in the offices. 

Shameful if you ask me

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