Hedge Fund Manager Loses 99.8% In 9 Months, Tells Investors He Is "Sorry" For "Overzealousness"

Tyler Durden's picture

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.

Lawrence Delevingne reports:

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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TheFourthStooge-ing's picture

Oops! Sorry about that.

But hey, it's just paper.

KnuckleDragger-X's picture

Overzealous? I would be using words like stupid and arrogant myself.....

jcaz's picture

First of many to come out from hiding.....

Funny how Raj-Raj boys do when they don't have inside info anymore......

Romney Wordsworth's picture
Romney Wordsworth (not verified) jcaz Jan 21, 2015 2:17 PM


NoDebt's picture

This dude needs to change his name.  Suggestions?  Shithead McDouchebag?

Spigot's picture

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

Big Corked Boots's picture

Get that man a job at the Fed!

lordylord's picture

He still gets a bonus, right? 

remain calm's picture

Ahh it's gone
2 and 20% of zero is zero

BullyDog's picture

Why worry about Zirp & Nirp when you have Hedge fund managers like him around.


Some folks lost their savings.

The Black Bishop's picture

Nailgun accident in 3....2.....1....

aPlayer's picture

I kinda wonder from which university these geniuses are rolled out?

Save_America1st's picture

Hey Li!!!   DUCK!!!  Nail gun at your 6!!!

847328_3527's picture

"If you don't hold it ...."

COSMOS's picture

Were his buddies on the other sides of those losing trades, and did the get a cut for steering all that money their way.

Richard Chesler's picture

Hookers, blow, and fast cars or as they say in Wall Street, stock options.


Bilderberg Member's picture

Charles Barkley thinks your bets were too aggressive.

FEDbuster's picture

Jon Corzine will be brought in to straighten this out.

Black Warrior Waterdog's picture

"We poor-housed some folks... "

Vampyroteuthis infernalis's picture

I am a poor trader, but damnnnnnnn!

giggler321's picture

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

onewayticket2's picture

you know who was on the other side of those trades?   "Belgium".

J S Bach's picture

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.  

PT's picture

... 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 ...

RaceToTheBottom's picture

"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%

FEDbuster's picture

Wonder if any Mob money was parked with this guy?  Hedge fund manager now wearing cement Italian loafers?

Bilderberg Member's picture

Did he invest in negative rate european bonds???

IronForge's picture

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...

UselessEater's picture

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?

Save_America1st's picture

Is "Li" short for "Lie"???


He don't look like no Chinese

Sum Ting Wong

FrankieGoesToHollywood's picture

The criminal are smarter than that.  Fees and bonus come off the top.

awakeRewe's picture

Did he lose all of his own wealth?

Don't bet on it.

Pairadimes's picture

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.

847328_3527's picture

Li will simply have to consult Hillary, how to turn $100 into $100,000 in no time at all.

stocktivity's picture

"He still gets a bonus, right? "


Of course...that's why he left the $200,000 in there.

effendi's picture

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)

Herd Redirection Committee's picture

"Seeking higher returns" = "I took your money to the casino"

As if this guy didn't siphon off AT LEAST $20 million....

max2205's picture

All he had to do was play tna  3.30 ramps....what a dumb fuck 

mkkby's picture

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.

smukster's picture

Just wait till the big ones come.

markovchainey's picture

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...

ThroxxOfVron's picture

"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...

55 men's picture

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!