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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PeterSchump's picture

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

cswjr's picture

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


NOTW777's picture

what do they have to liquidate

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.

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.


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.

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.

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.

Rodent Freikorps's picture

Will there be any hangings?

I Am The Unknown Comic's picture

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

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.

Zero Govt's picture

being able to leverage 100/1 ...Priceless

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.

Wakanda's picture


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

Hephasteus's picture

This could cause men all pause.

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.

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.

Joe Davola's picture

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

Apocalicious's picture

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

slaughterer's picture

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

Bastiat's picture

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

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.

Catherine007's picture

What is the source on this story??

Buck Johnson's picture

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

Buyemall's picture

how can i send an email to zh?

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