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Pershing Square Loses 6.7% In First Two Weeks Of August, Down 11% For The Year

Tyler Durden's picture




 

Since our subscription to the HSBC HF tracker appears to have expired, we now rely on Bloomberg Brief's for hedge fund performance update. And what an ugly update it is, especially for members of the old groupthink guard, led by Pershing Square's Bill Ackman. To wit: "William Ackman’s Pershing Square Capital Management LP dropped by 6.7 percent in the first half of August to drop year-to-date returns to -10.57 percent, according to HSBC Private Bank data." And while we know of the scorched earth currently happening on the 50th floor of 1251 Avenue of the Americas, another big time hedge fund, Owl Creek, is getting pummeled behind the scenes: "Owl Creek Asset Management LP’s $4.8 billion offshore fund was down 9.3 percent in the first 12 days of August, according to HSBC Private Bank data. The fund, managed by Jeffrey Altman, is down 9.16 percent year-to-date through Aug. 12."

Some more:

  • Quant Z Capital Management Ltd. was up 80 basis points in the first 15 days of August and had returned 7.3 percent year-to-date through Aug. 15, according to an email sent to investors, a copy of which was obtained by Bloomberg. The New York-basedfund is managed by Milind Sharma.
  • Arrowhawk Capital Partners’ Commodity Strategies fund was up around 3 percent in the first half of August to bring year-to-date returns to around 11.5 percent, according to an individual with knowledge of the matter who declined to be named because the information is private. The $180 million fund is managed by Jennifer Fan.
  • A $2 billion hedge on the S&P 500 Index generated more than $100 million in profit for Carl Icahn, Bloomberg News reported, citing two people with knowledge of the trade.

A summary of return by strategy. Something tells us that with the market on the verge of a bear market, there is at least one typo in the observation that short-biased equities are the only strategy down for the year.

 

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Tue, 08/23/2011 - 11:16 | 1590363 Doode
Doode's picture

I am up ~11% in August and almost 35% this year.

Tue, 08/23/2011 - 11:17 | 1590367 Pladizow
Pladizow's picture

Perhaps you should charge 2 & 20!

Tue, 08/23/2011 - 11:20 | 1590373 Doode
Doode's picture

Working on it...

 

PS. All unlevered

Tue, 08/23/2011 - 11:27 | 1590401 Cdad
Cdad's picture

Shorting group think stocks just now is good business.  The Wall Street lemming crowd is currently dressed in blaze orange making it quite easy to spot them.

 

Tue, 08/23/2011 - 11:31 | 1590414 Doode
Doode's picture

You must belong to the group that says - the easy money has been made. Now it is a stock picker's market - lol. I made 40+% last year and the year before was 30% and the year before and the year before...

Tue, 08/23/2011 - 11:32 | 1590416 HelluvaEngineer
HelluvaEngineer's picture

I find your ideas intriguing and I would like to subscribe to your newsletter.

Tue, 08/23/2011 - 11:34 | 1590422 Doode
Doode's picture

No newsletter or any advertising - just saying for posterity...

Tue, 08/23/2011 - 11:44 | 1590462 Boston
Boston's picture

Yeah, that's the ticket.  And you're married to Morgan Fairchild, right?.

Tue, 08/23/2011 - 11:30 | 1590411 Manzilla
Manzilla's picture

You beat me. I'm only up 15% on the year. Unlevered as well. I charge 2.5/20.

Tue, 08/23/2011 - 11:41 | 1590448 Dr. Engali
Dr. Engali's picture

It's been a good year for me. Long gold and silver. Had BAC and GS puts. Now I will move that money into gold on the next pull back.

Tue, 08/23/2011 - 11:44 | 1590460 Doode
Doode's picture

Yeah, those do offer higher rates of return on higher risk, but I only have US equities trading mandate atm. Trying to get a permission for futures and options as well.

Tue, 08/23/2011 - 11:20 | 1590377 Cursive
Cursive's picture

Bill Ackman? Isn't he the con man who based an entire hedge fund on one ticker: TGT? Yeah, 2 and 20 to "manage" one holding of Target.

Tue, 08/23/2011 - 11:22 | 1590386 baby_BLYTHE
baby_BLYTHE's picture

Marc Faber on Squawk Box CNBC 08/23/11

http://video.cnbc.com/gallery/?video=3000040963

Tue, 08/23/2011 - 11:33 | 1590418 lynnybee
lynnybee's picture

l.o.l. ....... luv Dr. Faber, he's the whole reason i got so involved in this story, the guy is just the best !

Tue, 08/23/2011 - 11:22 | 1590387 swissaustrian
swissaustrian's picture

The only REAL hedge funds are managed futures (CTAs) funds. Systematic trading, bitchez!

Tue, 08/23/2011 - 11:23 | 1590388 nah
nah's picture

its only money bitchez

Tue, 08/23/2011 - 11:23 | 1590390 slaughterer
slaughterer's picture

Ackman's new project is JC Penney. 

Tue, 08/23/2011 - 11:25 | 1590397 Stoploss
Stoploss's picture

He's the one who tries to be like Ichann, only his shoes are about 10 sizes smaller. If you want to completly fuck up a company, this is the guy to get it done.

Tue, 08/23/2011 - 11:30 | 1590413 slaughterer
slaughterer's picture

Icahn has alot of people working for him.  Without them, he would be unwinding his funds.  He is too old for the business, IMO, and should pull a Soros.

Ackman shorted MBI in 2007-2008, but seems to not be operating much of a short portfolio these days.  Too bad.

The guy I miss is Michael Burry: he wound down his Scion funds in 2008 and is now just a private investor.  He communicates very little about his positions nowadays, but his speeches about the macro direction help you see his investment thesis is roughly similar to ZH.

Tue, 08/23/2011 - 11:38 | 1590439 Pladizow
Pladizow's picture

Burry advocates farmland.

Only easy way I know to play is CRESY.

Anyone have alternatives?

Tue, 08/23/2011 - 11:48 | 1590477 kito
kito's picture

farmland is profitable if food prices rise. RJA is great play on food commodities. its a rogers inexed fund. solid.

Tue, 08/23/2011 - 11:42 | 1590453 Yardstick of Ci...
Yardstick of Civilization's picture

Icahn was right about Motorola . . . not sure if he stuck around long enough to make money on that call, but he's been trumpeting the value in that company for years.  Not that I'm a fan of his, but credit where credit is due.

Tue, 08/23/2011 - 11:36 | 1590429 Dr. Engali
Dr. Engali's picture

Ackman is a one trick poney.

Tue, 08/23/2011 - 11:37 | 1590432 kito
kito's picture

tyler, how is volume looking on todays surge? or is that a rhetorical question....

Tue, 08/23/2011 - 11:38 | 1590440 ArkansasAngie
ArkansasAngie's picture

Here's hoping that every last TBTF and hedge fund has double digit losses.  Wipe them from the face of the earth.

Insolvency is the only way to uproot these shatheads.

Bernanke needs to defect to China today ... his work is done

Tue, 08/23/2011 - 11:47 | 1590472 KevinH
KevinH's picture

What's the time frame for the YTD. It must not include Aug because short bias is down YTD?

Tue, 08/23/2011 - 12:03 | 1590540 FoieGras
FoieGras's picture

How's Seth Klarman doing this year?

Tue, 08/23/2011 - 12:08 | 1590561 Fox-Scully
Fox-Scully's picture

They need faster algos!

Tue, 08/23/2011 - 12:19 | 1590597 walküre
walküre's picture

What that means is that the funds will need to get off their asses and start putting money into real deals with good upside.

"Risk On" will be taken to a whole new level. The Fed backstopping the markets, ZIRP until 2013 and the money managers need to get very creative.

Could be that a spending binge is coming, like we haven't seen since the Nineties and dot.com era.

No returns, no fees and the funds go bankrupt. Only way out for them is to be aggressive and moving forward on everything that looks promising.

They're going ALL IN. All on BLACK so to speak.

Whatever moves, has a heartbeat and can't climb the trees fast enough will get nailed and has to take the money.

Please, please take the money! If it doesn't work out, we will worry about it later.. say in 2013?

This is the nature of American Capitalism. Forget higher interest rates. Forget more QE. Forget higher taxes. Now comes the FLUSH of hoarded cash into the draught stricken financial system from funds which are at a DEAD END street.

Tue, 08/23/2011 - 12:45 | 1590734 Bam_Man
Bam_Man's picture

Ackman is a genius. Just like Ed Lampert.

The only problem is that these guys eventually start believing their own bullshit.

Tue, 08/23/2011 - 13:58 | 1591110 Earl of Chiswick
Earl of Chiswick's picture

https://w1.buysub.com/pubs/BW/BLH/Hedge_995_6_2011.jsp?cds_page_id=10187...

 

(just don't forget to cancel if it's coming out of your own pocket)

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