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Hedge Fund Manager Loses 99.8% In 9 Months, Tells Investors He Is "Sorry" For "Overzealousness"
Day after day, mainstream media proclaimed December the month to be in stocks: seasonals, Santa Claus rally, and performance-chasing funds would 'guarantee' upside. For Owen Li, former Raj Rajaratnam's Galleon Group trader, and the clients of his Canarsie Capital hedge fund, December 2014 will never be forgotten. According to CNBC, from around $100 million in AUM in March 2014, Li told investors in a letter, the fund had lost all but $200,000 and he was "truly sorry," for "acting overzealously" in the last 3 weeks.
A hedge fund manager told clients he is "truly sorry" for losing virtually all their money.
Owen Li, the founder of Canarsie Capital in New York, said Tuesday that he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March 2014.
"I take responsibility for this terrible outcome," Li wrote in a letter to investors obtained by CNBC.com
"My only hope is that you understand that I acted in an attempt—however misguided—to generate higher returns for the fund and its investors. But even so, I acted overzealously, causing you devastating losses for which there is no excuse," he added.
...
Li said in the letter that he made a series of "aggressive transactions" over the last three weeks to make up for poor returns in December. He said he bet on stock price options, predicated on the broader market rising. But stock indexes instead fell, causing the huge losses along with several undisclosed direct investments, according to the note.
Li is a former trader at Raj Rajaratnam's Galleon Group, which collapsed amid insider trading charges.
Li's lieutenant at Canarsie is Ken deRegt, who joined in 2013 after having retiring as the global head of fixed income sales and trading at Morgan Stanley.
To Mr. Li's less than sophisticated investors we have a short clip summarizing what just happened:
As for Mr. Li, we look forward to his next "hedge" fund reincarnation so that we too can give him some of our money to manage because it really is not easy to find someone who can blow through $100 million in less than a year. And who knows: if someone is willing to fund a guy that dumb and that clueless, next time he actually is due to hit it out of the ballpark.
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Oops! Sorry about that.
But hey, it's just paper.
Hedgefonds 0 Performance
Ho Li Fuk
Li Too Lo
Overzealous? I would be using words like stupid and arrogant myself.....
First of many to come out from hiding.....
Funny how Raj-Raj boys do when they don't have inside info anymore......
...AAAAND IT's GONE!
This dude needs to change his name. Suggestions? Shithead McDouchebag?
I'd say in about 14 day s we'll read of Mr Li's demise. The epitath on his headstone will read:
Here Lies Li
A Hedgie kind of Guy
One lie too many and
No More Li's
Get that man a job at the Fed!
He still gets a bonus, right?
Ahh it's gone
2 and 20% of zero is zero
Why worry about Zirp & Nirp when you have Hedge fund managers like him around.
Some folks lost their savings.
Nailgun accident in 3....2.....1....
i think this south park says it better...
https://www.youtube.com/watch?v=9u0EL_u4nvw
I kinda wonder from which university these geniuses are rolled out?
Hey Li!!! DUCK!!! Nail gun at your 6!!!
Uh, my username...
"If you don't hold it ...."
your hands are free?
Were his buddies on the other sides of those losing trades, and did the get a cut for steering all that money their way.
Hookers, blow, and fast cars or as they say in Wall Street, stock options.
Charles Barkley thinks your bets were too aggressive.
Jon Corzine will be brought in to straighten this out.
"We poor-housed some folks... "
I am a poor trader, but damnnnnnnn!
Well you can't blame the guy - no really it's the economy; there is 0 inflation but the price hookers for city high flyers is expensive and keeps rising for some reason
you know who was on the other side of those trades? "Belgium".
At least he's an honest thief (<- oxymoron?). Most of the other tribesmen of Wall Street would run off with nary a peep after having pocketed several millions of the hedge funders' cash.
... and none of his supervisors noticed anything was amiss becoz ... becoz ... becoz, ummmm, you know, he was very sneaky and our traders perform better when they can self-manage and, ummmm, err ...
"Nailgun accident in 3....2.....1...."
As bad as it sounds, it would probably be good if there was a 25%-50% chance of him being killed.
It might introduce something that is fully lacking in WS: some personal responsibility.
If he was in Japan, it would be 100%
Wonder if any Mob money was parked with this guy? Hedge fund manager now wearing cement Italian loafers?
go long nerf nail guns
Did he invest in negative rate european bonds???
He appeared to be juggling a half-dozen Nailguns...or have tripped over each and every one of them in order to have nails from each penetrate him in unusual ways...
Some folks lost their savings.
...others got a real baby borne, amazing how 9mths can play out. Wonder what his baby looks like today? Where is the dosh?
Is "Li" short for "Lie"???
He don't look like no Chinese
Sum Ting Wong
The criminal are smarter than that. Fees and bonus come off the top.
Did he lose all of his own wealth?
Don't bet on it.
Hell no. He's $199,800,000 richer. You just won't be able to find the money.
"Overzealous" is too big a word for someone stupid enough to lose this kind of money. Something else happened.
Li will simply have to consult Hillary, how to turn $100 into $100,000 in no time at all.
"He still gets a bonus, right? "
Of course...that's why he left the $200,000 in there.
Mr li will only earn a bonus of $200,000.
that way there is no scramble by the investors to get 0.2% of their money back.
(and it's gone)
"Seeking higher returns" = "I took your money to the casino"
As if this guy didn't siphon off AT LEAST $20 million....
All he had to do was play tna 3.30 ramps....what a dumb fuck
This is why you NEVER let someone else invest your money. It's heads he wins (management fee + 20% of gains), or tails you lose (when he's wrong). The incentive is to take huge risks, because the manager has nothing to lose.
Learn to do it yourself or stay the fuck out.
Just wait till the big ones come.
Exactly! What's the over/under on Mr. Li still being alive this time next year? That's a hundred million worth of angry waiting for him out there...
"I'd say in about 14 day s we'll read of Mr Li's demise. "
I think Mr. Li is going to be just fine.
Rumor has it that a close friend he went to college with made a nearly $100M in profits in one of his funds in December and is setting Li up with a gig managing his newly purchased tropical real estate holdings...
Guys, guys, guys, you are totally missing the big picture on this one. This is obviously the sequel to Brewsters Millions.....Come on guys, its so simple!
Fleatick Tapeworm McLeech?
"2015 Nail Gun Award" recipient.
Hihaha!! Dead Canary Capital.
"This dude needs to change his name. Suggestions? Shithead McDouchebag?"
I'm thinking 'Jim Cramer' has a nice ring to it. [or perhaps fonestar or Leo Kolivakis]
It's not gone. Someone collected 100 mil. Who is to say this mcdouche doesn't know them?
"Loss on...several undisclosed direct investments"
Hookers and Blow!
Offshore bank accounts? Bags full of used bills under the floorboards of the yacht? Political contributions for Go Free of Prosecution Cards?
We are SO SORRY. http://youtu.be/9u0EL_u4nvw?t=10s
no inside poop so he be reading ZH: short SPY, TNX, long AU/AG & TSX...s%$T i did all that all by myself
Obviously KD-X, you have failed to achieve the proper perspective:
Mr. Li just 5-STAR'd the tax-loss selling season. He Da Champ!
Everyone else hugely failed to access this prime Capital-Loss-Carry-Forward opportunity.
focus on the word: "truly" ........
means - most asssurdly / from the whole heart / from the core of my being / from the center of my convictions / with greatest contrition / absolutely fuckin sorry /
I would prefer as a true honest statement of his beliefs - He cut off his right arm!
"Overzealous? I would be using words like stupid and arrogant myself..."
You seem to have a poor grasp of human nature, especially when it comes to Money.
Yes, when it comes to Money: Never attribute to stupidity, arrogance or over-reach, when it can be perfectly explained by... G R E E D. "Wolf of Wall St" comes to mind.
Let's wait for some Forensics, to see what he really did with it and where a nice portion is tucked away. Just make sure you also investigate ALL his business and personal relationships (rathole pals), to see who Aided & Abetted.
Corzine lite.
If we was overzealous, then what would be exactly the right amount of zealousness?
That which produces profit?
Reads as if this guy has been on the Manic Phase of his Manic Depression Mental Illness...
Suicide would not be too surprising.
That is how this will be taken care of...for expedience's sake.
yup 80% of hedgefunds have blown up in this market enviroenment and they still get to live the good life.
Just imagine if they put their money in BIOTECH a few years ago. HOLY SHIT< BIOTECH – CHART here==>http://bit.ly/1fMcakI
They would be sitting pretty if that was the case.
But no, they still think they are god, and doing gods work, and end up sending emails to their clients telling them they FUCKED UP, and sorry but ALL THEIR money is gone. Bummer.
My final report on Malaysian air crashes and SFO crash: Asians suck at driving,
there I just saved NTSB etc. millions
oh and the java sea crash, yeah let's try to climb at 9,000 feet per minute... good plan
Ho Li Fuk Sum Lu Zal
Fuk Mi To
FORWARD SOVIET!
This is how I imagine he says he's sorry.
https://www.youtube.com/watch?v=9u0EL_u4nvw
hedge now means max levarage (i thought hedge was playing it safer)
and volatility index-VIX means downward selling pressure (i thought volatility was up and down)
and O said he decreased our deficit by 2/3rds (its down to 6 trillion???)---propaganda for its growing slower
This guy obviously thought he was too big to epically fail. He was wrong.
https://www.youtube.com/watch?v=jCLizTg9nWo
not sorry, really
He's sorry, sooo sorry.....
https://www.youtube.com/watch?v=Ocv5WdBmSok
i wish i had a list of the clients, their is a bridge that seems to be a great investment...maybe even a once in a lifetime oppurtunity
Really, let's hack his computer and get his e-mail client list; We can sell them participations in our FX trading company; let's have a power lunch and flesh this out; this could fly.
There will be MANY more of these revelations - how many hedgies were crushed by the Swiss move alone?
GOP's Spanish and English State of the Union responses differ on illegal immigration, Cuba:
http://tinyurl.com/phxv2o3
The big banks are starting to eat it too but they have PR and legal departments to hide the malfeasance... for awhile.
He didn't need the Swiss. He had gold and silver miners.
who would trust this dirtbag??? Not sucha good trader without insode info!!
Doesn't sound like he lost his head... just yet.
But he looks like he gives it.
And that my friends is how hedge funds get to be.........going, going, gone!
Investing Gambling is a hell of a lot harder without inside info
He should have just called Rajat Gupta.
"Past performance is not indicative of future theft, er, results"
LOL !! I'm sorry. LOL !! made my morning. too funny. If you're sorry, prove it; shoot yourself, you Darwinian reject.
Affluenza is a bitch!
Its a lot harder with hard currency. "Whoops sorry, I just lost 1000 tons of Gold"
Who's this guy trying to kid? He lost 99% on hookers, blow, slow horses, and bad roulette numbers.
and wasted the rest.
The financial world is really wonderful. Lose all of client's money and it's simply a, "sorry, bad judgment call" and you walk away scott free to begin scamming again from someone else.
If an engineer's building collapses....or a doctor cuts off the wrong finger....or a lawyer misses a court filing.....whoooofffff!
Their license is gone forever and they're relegated to the dump pile while they watch the law suits pile up[ against them and maybe even some criminal charges if the local prosecutor is running for office and needs some PR time.
Government is an even better deal.
No one expects competence, ever.
Yep, any time you are corrupt you can always just say that in fact, you are not corrupt, only stupid! It has worked for GHW Bush (the 'wimp'), Bill Clinton, GW Bush, Obama...
The person who plays Todd Chrisley in the TV show "Chrisley Knows Best" was a CFP, who also lost his clients' money, and led a very lavish lifestyle.
He declared bankruptcy, and owes $45 Million. I guess the successful TV Show allows him (first and foremost) to maintain the lavish lifestyle for him and his spoiled family, and hopefully pay back some or all of that money "lost".
that could be post of the year, lol
and presumably, a nail gun to be used only once.
This guy wasn't in the club, obviously, so no nail gun needed.
Affluenza is a hell-of-a-flu!
when you lose more than the contract on your life is worth....
Classic!
ROFL
And its gone. Please step aside.
"FXCM Inc. (FXCM) said it would increase margin requirements globally for clients who trade currencies and gold after the surge of the Swiss franc caused losses that forced the firm to take a bailout from Leucadia National Corp. (LUK)"
http://www.bloomberg.com/news/2015-01-21/fxcm-boosts-margin-requirements...
HAHAHAHAHA and we sit here and take the piss out of retail forex gamblers losing £5k.
It's all a gamble. I prefer horses to stocks.
the horses are treated like shit... you're just preferring a double misery but your point is understood, its all craps at the end of the day.
The workers for publicly traded companies are treated like shit.
I'm not sure if this means I'm racist, but that guy doesn't look like a Li.
They left off the 'e' at the end. Your confusion is understandable.
yes there would normally be Sum Tin Wong with this picture, but the guy in the photo is in fact Ken De Regt.
At least he qualifies for the Guinness book of world records for fastest loss of client money.
His clients can be happy that they contributed to a world record.
There is always a silver lining if you look hard enough.
And money is never gone... it just switches sides..
in his case... not his side...
Not even close. It's been done a lot faster.
Hence the need for lame-stream memory holes...never acknowledge or revisit the absolute skinning people get; they may recall the pain and act accordingly outside the cute lights and tinker bells of casino land.
Be interesting to know who had the other side of his bets ....
Then there's the book, the movie rights, the gossip show circuit...
He be awe 'ight.
"At least he qualifies for the Guinness book of world records for fastest loss of client money. His clients can be happy that they contributed to a world record."
He took 9 months to lose all their money though.
Wait until we start hearing about the guys who lost all their clients money in 12 minutes. Now that's bragging rights.
its a real blast watching the MoneyChangers trying to force the phony paper price of Silver and Gold down while pumping up the fucking Fraud Markets to no avail...
more real money will be bought - rest assured...
DEATH TO THE MONEYCHANGERS....
I imagine he'll be laying low for awhile along with that asswipe from Morgan Stanley.
is he sorry or ronery?
"why is everyone so fkg stupid why aren't moar people interrigent rike me?...."
I'm So Ronery by Kim Jong-il - Team America: World Policehttps://www.youtube.com/watch?v=xh_9QhRzJEs
Apple borrowed massively in euros. That says all you need to know about dollar rates.
Why does the yen have the sudden "moonshots"? Because in my view corporate borrowers are stepping in and taking advantage of these ridiculous rates.
Don't know how much longer the value of the money can be sustained tho.
Tough shit
Sorry for stuffing your money down the shitter. But, I was so close to being on the righ side, so damn close.
Hope he has nailgun insurance
He only saw the Fat Bonuses and Profits he would grab if his gamble paid off.
Hey, what's to lose when you're gambling with OPM?
Nailguns are for those who try to sell before incurring huge losses. Panicing not allowed since the whole shit show will collapse.
Honey ,did you see my nail gun ?
And it's gone!
... as he should be. Sleeping with the fishes and lost AGEs from boating accidents. I can't help thinking this dude made an "arrangement" with someone else to transfer $200 mil of other people's money somehow. Or, he has a little meth problem. He does not look Chinese?
I’d get in my car and bring that little fucker a visit if my banker would bring that news.
But on the other side, you need to invest your own money and not expect a 20% return a year from somebody you don’t know
Well, soon your banker will bring it like "this year you will pay 0.5% over your savings account and next year 1.0% and so on until...... "IT IS GONE"".
I bet he got a bit fat salary whilst he was losing all that other people's money
No risk to his money
You'd think this would look bad on the resume.
I hope all Bernie Madoff's former clients had inWested with his firm.
the hedge fund that doesn't hedge.
Maybe he bought real hedges - and they died.
It is really really hard to trade without insider help....Mr. li was overheard to say....
Your saving are gone, next ...
https://www.youtube.com/watch?v=-DT7bX-B1Mg
Fuck me, I bet this mother fucker becomes the next Fed Chair. I bet the white haired grand mother ewok got wet after reading this and you know corzine popped a boner.
Will there be another dead banker story in the headlines tomorrow?
No he hurts only useless eaters... no danger there
"I'm all in"
Mike McDermott to Teddy KGB in the opening scene of "Rounders"
Went all in on baggies of blow?
Well, as long as he's sorry ...
I doubt anybody who could afford to be in this shit fund put all his/her stash into it. Probably making up for it in another hedge. No pity here.
Sorry about that, oh by the way I still want my 2%.
oh yeah, the $200K that's left is mine bitchez. you-all can owe me for the rest.
GOOD!!!
Hope the assholes that believed the monthly statements they were receiving after 2008 got everything they deserved.
May all these stupid fucks eat shit and die!
C'mon. Tell us how you REALLY feel.
Like the real 'folks' got hurt.... just a skirmish & clean out of wannabe's
"Li is a former trader at Raj Rajaratnam's Galleon Group, which collapsed amid insider trading charges."
Quite a résumé this gentleman is developing.