Iconic Hedge Fund Perry Capital Loses 60% Of AUM As Investors Flee

Tyler Durden's picture

The slow-motion trainwreck that is the hedge fund investing world, which as we documented one month ago has failed miserably - if predictably - to compensate LPs for its 2 and 20 model, and generate outsized returns during a regime of central planning, having created zero alpha since 2011...

 

.... took its latest casualty in the form of the once-iconic hedge fund Perry Capital. While it has not unwound just yet, the 28-year-old hedge fund run by Goldman alum Richard Perry, has lost more than half of its assets in less than a year after posting declines since 2014.

Richard Perry

According to Bloomberg, the firm’s assets slumped to $4 billion as of the end of August compared with $10 billion in September last year. The reason for the tremendous outflows is that Perry has posted losses of 18.4% from the beginning of 2014 through July of this year. The fund declined 2.6% in the first seven months of this year after losing 12.6% in 2015.

Curiously, as on numerous previous occasions, while Perry's losses aren't even that substantial, in a time when the S&P500 just can't go negative courtesy of central banks, LPs patiene has become non-existent (however, a shocking outlier in this regard is Bill Ackman's Pershing Square, where the LPs have continued to amaze the investing community by not redeeming what's left of their assets despite one terrible investment decision after another).

What is even more notable about Perry, is that the firm had never had a losing year from its 1988 inception through 2007, when it managed $14 billion. Perry, 61, had previously worked on Goldman’s risk-arbitrage desk, which was once led by Robert Rubin, who later became U.S. Treasury secretary. The team spawned a group of hedge fund managers that included Frank Brosens, who co-founded Taconic Capital Advisors, and Eric Mindich of Eton Park Capital Management.

Perry's core competency is "event-driven", with a focus on merger arb, takeovers and bankruptcies.

As Bloomberg adds, Perry Capital is among the managers including Tudor Investment Corp. and Brevan Howard Asset Management that have seen investors flee. The $2.9 trillion hedge-fund industry has come under fire this year for everything from excessive fees to lackluster returns, with investors pulling the most money since the aftermath of the global financial crisis.

Finally, here is the latest hedge top and bottom 20 hedge fund performance breakdown courtesy of HSBC.

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Cognitive Dissonance's picture

I don't feel so bad now that it's becoming more and more evident with each passing day that the Masters of the Universe can't trade this market either.

Long live BTFD

/sarc

Looney's picture

 

drip-drip-drip

Oh, the sweet sound of gonorrhea!   ;-)

Looney

Cognitive Dissonance's picture

Yes, post (Wall Street) dick drip.

WhyDoesItHurtWhen iPee's picture

Thought this would be the appropriate time to pop up.

 

auricle's picture

two of the top 10 are russian funds.

bleu's picture
bleu (not verified) auricle Sep 10, 2016 9:16 PM

The coming Financial CATACLYSM will be Ugly, Bloody, and Messy.
http://bit.ly/1KogtGi

813kml's picture

Looks like someone didn't pay tribute to the Clinton Foundation, their weekly newsletter is chock full of insider trading tips.

Omen IV's picture

Perry's core competency is "event-driven", with a focus on merger arb, takeovers and bankruptcies.

the friendly leaks have dried up  for...........events!

shining one's picture

That company is chicken feed. BlackRock AUM US$4.89 trillion. Run by.....yep a Jew.

LadiesLoveCoolJames's picture

Iconic? Iconic! What the fuckety fuck kinda fucking shit is that? This idolization of financial pimps is a big part of the problem.

Vinividivinci's picture

Completely agree @ CoolJames...
Laconic, Ironic, Demonic...anything but "iconic".

Kirk2NCC1701's picture

He shouldn't feel too bad. My AG "Investment Fund", that I created with my parents' money (because "PM is a store of value"), lost a lot more.

The NAV plummeted from the $43 strike price in 2011, to $15 before it gradually clawed its way to its measly $20 NAV.

And yet there are idiots and shills who get excited when it approaches $21. What of the "Store of Value" that they have to tap into (thanks to Obama)?

Should've bought stocks. Or should've DIVERSIFIED, instead of putting so many of their eggs into one basket -- the PM basket.

Moral: stick to fundamental investment principles, not to the loudest and most convincing salesmen and shills.

847328_3527's picture

But...but...but the stawk markets is at all-time high almost and th emedai says "everything is awesome."

What happened?

Arnold's picture

It's the beer talking..

But it would seem to me to be good to redeem at all time highs.

The model is not giving the return expected, things will go kablooie in some soon future time, cash it in.

Boris Badenov's picture

Many wish the money was in a secret account at JPM earning 4%.....

0xAA4214C's picture

What we learned from the Kennedy assassination is, go along with the tribe and get rich or stand in their way and get killed. So why did this dude not buy stocks like everybody else?

Ajax_USB_Port_Repair_Service_'s picture

Hamptons real estate prices will be going down hard.

Captain Chlamydia's picture

.....and the Special Crisis Clock just stroke midnight.....we now have officially entered the 2016-2028 crisis timeline folks! Start the Money Machines, ready the helicopters, moar QE, more money to the Elite. 

Lemmings, stay in line, over the cliff! 

bigkahuna's picture

This fool has not figured out that "investors" are a thing of the past? If you don't have a central bank in your portfolio, you are DONE!

RawPawg's picture

he should have been stacking

maybe next time,dude(hint,there won't be a next time)

Bam_Man's picture

Anyone that gives these c**ks***ers their money to "manage", deserves the fleecing they will ultimately get.

Father ¢hristmas's picture

Lol@ Russian Prosperity Fund and Tulip Trend Fund.

Also: Lol@ Blackrock in the bottom 20.  Rent-backed securities not working out as planned?  Time for some nail guns to start showing up in the ghettoooo lol.

saveUSsavers's picture

JUMP ! ARSEWHOLE PARASITE

adonisdemilo's picture

See dumbfuck, it's not easy to make ANY money when you're not connected to freebies, courtesy of the USG, aka, the tax payer and the printing press.

Dr. Bonzo's picture

And you thought you were the shit while you were at GS trading on their magic algo and their insider deals; turns out without the inside info and the MIT magic juice or a fed backdoor you're just another chump.

moneylover3's picture

Pure BS

This article is a fodder to the sheeples to make them feel better

Move on.flip that burger,well oh!

U4 eee aaa's picture

Did he trade Goldman's trade recco's one too many times?

Publicus's picture

>Perry's core competency is "event-driven", with a focus on merger arb, takeovers and bankruptcies.


So basically, insider trading.

 

Hang that guy and confiscate all their assets and give it back to us.

Colonel Klink's picture

Somehow I knew the filthy jew was in there somewhere.

In 1985, he married Lisa Rachel Newberger in a Jewish ceremony in Manhattan.[10] They reside in a remodeled 17-room townhouse on New York City's Sutton Place. He purchased the property in 2000 for $10.9 million, $4 million below its listed price. The domicile is filled with some of the best examples of Pop art, which have inspired the clothing style of his wife.[2]

Perry is an ardent supporter of Democratic Party-associated causes, institutions, and people, including President Obama. Perry serves as a board member of the Israel Project and in 2010 co-hosted along with Seth Klarman an event for Ziad Asali, the founder and president of the American Task Force on Palestine.[11]

 

robnume's picture

Der Golem Ballsachs: Excellent training ground for participating in the "Golden Fleece."

inosent's picture

how anybody with 10BB can lose in the market is lost on me. The guy could have done nothing and he'd still have 10BB. If he was patient and selective, there were a few obviously great trades to make in the last 2 years. God knows I wish I had just a litte more capital and I could retire in a couple years. But here comes a guy with 10BB and loses 6.

Sad.

milking institute's picture

Poor Guy,will be living in a rusty trailer in Barstow with a blind Dog surrounded by empty beer cans.  Oh,you mean he invested OTHER peoples money,never mind......

peu peu moxi's picture

RU dunGraven dig somemore sandspit !

peu peu moxi's picture

The slow-motion try brainwreck cn vs bc Grail !