Bad Bets of 2014

December 29, 2014 James Heinsman In the News

With only a few days left of 2014 we thought now is a good time to look back and see what predictions did not work out quite so well for some major hedge fund managers.

General Motors is a well-liked holding which is popular as a component of hedge funds. Unfortunately it seems for many funds betting on GM, including the mega-car manufacturer in the fund soup was not a good choice. The stock fell 17% year to date. Recalls and accident fatalities definitely put pressure on the company.

Bill Ackman’s Pershing Square fund bet against Herbalife, and now Ackman is one of the few reaping benefits from that food supplement company. Year to date Herbalife has shed more than 50% of its share price.

Herbalife took a dive this year. Photo by  Darwin Figueroa

Herbalife took a dive this year. Photo by Darwin Figueroa

Amazon is not doing so well so far this year, losing 23% of its stock’s value. This online mega store used to be the darling of many hedge funds; the company was dropped like a hot potato this year by Goldman Sachs Group’s VIP list in the third quarter.

Amazon, Bill Ackman Pershing Square, General Motors, Hedge Funds, Herbalife,

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