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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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And this year's winner of the John Corzine Investment Award goes to..............Owen Li! What a surprise this must be to Mr Li's widow.
Nail guns for xmas.
What difference does it make whom you " invest" with. When the bail-ins start happening, this cartoon won't be so funny.
bail ins coming late 2015, early 2016, you get to watch your life savings bail out the psychopaths.
Just finished reading "Hedge Funds for Dummies" and ready to start my own hedge fund...
Send your money to:
SHOWMETHEMONEY LiquidateU Disappearing Funds LLC.
69 Reggie BenOver
South of Mason Dixon Line, TN
Guaranteed to return me 99% returns!
Just finished reading "Hedge Funds for Dummies" and ready to start my own hedge fund...
Send your money to:
SHOWMETHEMONEY LiquidateU Disappearing Funds LLC.
69 Reggie BenOver
South of Mason Dixon Line, TN
Guaranteed to return me 99% returns!
Remember those Southwest Airlines commercials? "Wanna get away?"
... what a maroon! ...
I think he was buying megamillions and power ball tickets
Look at the bright side, he made $2mm in fees, and he won't incur any messy redemption fees...
c$11m loss per month. You'd be curious as to what you might be doing wrong after the first couple of months, no?
At the end of the day a Hedge Fund manger is just a professional gambler and he lost.
Oh and BTW, that last $200,000 is reserved for a performance bonus.
And it's gone...
I love that south park episode, and actually posted that link last week on here. The next one I'll be posting in the near future:
https://www.youtube.com/watch?v=u40mJ_ls5VE
well he got 200k left ... whaddaya say ... throw it all on the 1 mth BBRY 20 calls ? With a 25 takeover offwer by Samsung we'll be back at the 4MM level in 30 days....WTF ?
Gee, I wonder how many corporate bonuses were handed out first?
Crony-Capitalism at it's finest...
Where Theft Is Good!
Who has a link to a picture of that chump???...
In my opinion he'll make the cover of Gambler's Anonymous. He still has that 0.2% left. I can't wait for next months edition.
You meant "Oh Ree Fuk!" Phonetically fixed.
Mr. Li could be the victim of an unfortunate nail gun accident.
Give the guy some credit for saying sorry and being apologetic.
Another $100 million should be credit enough given that he has not socialized the losses off the backs of the indentured servants yet. What is a hundred million between Banksters anyways? That's just hooker n' blow money for one week for cryin' out loud.
a friend of mine (who went to an ivy league school) has a bf who works at hedge funds
hes been at like 3-4 already, they keep blowing up and he keeps getting new jobs.
must be a nice life to have a bad track record and still get a job after your fuckng company goes bankrupt.