"The Carnage...The Carnage..." - Presenting The Complete September And YTD Hedge Fund Bloodbath

Tyler Durden's picture

HSBC has just released their latest weekly hedge fund return compilation report. There is no sugarcoating this: it is a complete bloodbath. It is no surprise why hedge funds are desperate to pull off any sort of month end rally. Without it we fear the hedge fund space, which at last check was approaching $2 trillion in AUM, will collapse by 25% after the new year when the full carnage of the redemption requests is made public. And while we know that Paulson is a, well, liquidator is such a harsh word, but if the word fits (unless of course he makes whole all of his more "senior" investors with his personal cash, something which has been vaguely rumored), we certainly had no idea just how pervasive the decimation within the hedge funds ranks was until we saw the mid-September results. We really, really hope the collusive short squeeze-cum-month end rally works out for the hedge fund community, becuase it really will be "or else."

Summary YTD performance, in which we find that the Paulson Advantage Plus is the third worst performing fund YTD in HSBC's entire universe!

Full report (pdf):


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Cassandra Syndrome's picture

A Factor in the Gold selloff in the last few days?

brew's picture

reckon so... (outlaw josey wales)

westboundnup's picture

Speaking of Apocalypse Now, I envision the Dennis Hopper character trying (manically) to explain the logic behind the EFSF. 

covert's picture

enevitably, the hedge funds will prevail even after a long hardship.



chump666's picture

The US market is underwritten via the Fed, so, once a clear sign is to short...that will be the carnage.  Hedge Funds have squeezed out rallies.  But once the ok to short, the Dow and S&P are toast.  Very hard market to hedge in, hence the liquidation trade a week back.

pelican's picture

I heard that  the number of shorts on the S&P are through the roof.  I wonder what is next...

knukles's picture

Hedge.  Quaint term, that.

Vampyroteuthis infernalis's picture

Zero Hedge, awesome term that is.

BlackholeDivestment's picture

... no end of the year bonus, really? ...naw, really? http://www.youtube.com/watch?v=6pU7tIsnKXc

knukles's picture


"Tulip Trend Fund Ltd., -A"  One of the worst performers.
Kinda like having a nuke named Turkey Point, Millstone, Diablo Canyon.
Didn't somebody take 3rd grade English; foreshadow?

dwdollar's picture

Even funnier is the fact that people see that and say... "Gee that looks like a great place to put my money."

New_Meat's picture

knuckles: bitchin' like that, then, if u have any integrity, ya gotta' shut your computer and your house off for 20% of the time. - Ned

Tijuana Donkey Show's picture

Knuckles be dissin there engrish dawg, notz dez nukz. If theyz gots the saem eduacation in amerika, dey no dat fourshadow be a rappa.Holla at yo boy, I getz fiat!

konputa's picture

@knukles that is a riot. maybe its a signal to see who has the "smart money".

DeadFred's picture

LOL, I thought you were joking.

swmnguy's picture

What, were the names "South Sea Fund," and "Madoff Fund" taken?

zorba THE GREEK's picture

Many factors came together to cause the recent gold sell-off, including market manipulation.

Soon many factors will come together to cause a surge in gold price as never experienced before.

European banking crisis   Fed QE3  Asian buying season  Pan Asian gold exchange  Decline of USD

Bond market crash   Chinese housing market crash   Stock market crash   Break-up of the EZ   Fed QE4


tekhneek's picture

I concur ... hedge accordingly...

chump666's picture

A lot of people still don't get it.  The Copper/Silver/Commodity recent sell off had nothing to do with Greece.

It's all China baby.

nmewn's picture

Thats one fugly report from the guys with ties...the public hose gets a little kink in it and they fall off the edge of the table...lol...maybe they can make it up with their tears.

Downtoolong's picture


It must be depressing when three of the funds on the worst performer list start with your last name. I guess this is what happens when you lose the advantage of a Goldman assist.

Ye Ye's picture

Ergo, Paulson Disadvantage Minus is one of the best performing funds of the year.

Wannabee's picture


Good one...I'd like a piece of that action. Fund open to retail peon's like me, or institutional only?

tekhneek's picture

Makes you want to get access to the portfolio and create your own "Paulson 3x Bear Fund"

Bitch would be pullin' 120% YTD.

buzzsaw99's picture

When Paulson isn't illegally colluding-racketeering with god damned sacks to ripoff pension funds he sucks mightily. They should all be in prison. If he wants to make a profit again he should go suck blankfein's dick.

sgorem's picture

i have to respectfully disagree with you Mr. buzzsaw, if i may politely correct your statement "they should all be in prison", to "they should all be jambed into a fucking wood chipper and fed to the fucking pigs." there, that's easier for my eyes to read. thank you kindly..... 

TheFourthStooge-ing's picture

...and a sinister midget with a bucket and a mop where the blood goes down the drain.


macholatte's picture

........ as the half time show of the Super Bowl.

DeadFred's picture

"they should all be jambed into a fucking wood chipper and fed to the fucking pigs."  i have to respectfully agree with you sgorem except that you misspelled piigs.

Trimmed Hedge's picture

So much anger.

Wouldn't by any chance be due to the recent 40% decline in silver, would it?

Tompooz's picture

naw..the pigs would be unfit for human consumtion. You'd risk the spread of mad hedger's disease.

flyr1710's picture

so i wonder which one of those from the right column has Liesman on speed dial

Ye Ye's picture

I've got a great idea for a new ETF.

Paulson Ultrashort 3X ETF

"The investment seeks daily investment results, before fees and expenses, of 300% of the inverse of price performance of the Paulson Advantage Plus hedge fund. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the hedge fund. It is non-diversified."

Non-diversified = 3X short BAC.  Which makes me wonder if Buffet Ultrashort 3X ETF could work as well ...

X.inf.capt's picture

please, ye, dont give them any ideas...

long-shorty's picture

i will create a 3x ultrashort version of my fund for you if you pay me 6 and 60 to manage it for you :-)

X.inf.capt's picture

hey, ned, how you doing?


tekhneek's picture

Damn haha. Just saw this comment after I wrote mine

I was going to call it the "Paulson 3x Bear Fund"

Robslob's picture



Still don't understand how they can Rally with no one to hand off too?

I guess they draw straws and take turns selling...which is like asking a shark to wait his turn during a feeding frenzy...

DeadFred's picture

Someone correct me if I'm wrong but this is how I envision it. Imagine you have two robots putting out bid and ask prices on their limited supply of stocks. The robots read on their news feed that the CNBC gods have declared that we are not in a recession, just a soft patch. That means that stock will improve in value so they start trading their stocks back and forth each time adding a very small increment to the price. Occasionally as the quoted prices rise the real world enters in as some poor guy has to cover his short position because of the price rise. The robots are even happier now because their trend is confirmed and accelerating. Their little 0100101010101110 brains are in heaven because of the profit they are making. At the end of the day they end up with the same number of shares but at a different price.

In some ways this is the same as the market has always been. Barring an occasional IPO, split, buyback or bankruptcy there are always the same number of shares out there and they are worth whatever anyone will pay for them. The robots can do this forever as long as the impact of real world trades isn't large enough to overwhelm the robotic churn. The algos are more complex than that but when the real world volume is low, price will go where the formulae say it should go.

disabledvet's picture

I'm trying to imagine a hedge fund "going triple long the thirty year treasury...AND LOVIN' IT!" Hmmmmmm. Nope! Just don't recall that one! Now let's revisit Ms. Meridith Whitney's call on muni's shall we!


Robslob's picture



I remember a lot of people calling for the tech bubble to crash...early

I remember a lot of people calling for the housing bubble to crash...again early

I remember a mot of people calling for the (fill in here) to crash....once again...early

They all happened....later...doesn't mean they don't happen.

theotheri's picture

remember a mot of people calling for the (NOT SO) PRECIOUS METALS to crash....once again...early

tekhneek's picture


Damn CNBC (+MSM) and their impeccable track record with predictions! Gold's been a bubble... for a long ass time.

Where's Jim Cramer and Timmay when you need them?!