One More Hedge Fund Bites the Dust

June 17, 2015 Debbie Jacobs Hedge Fund News

Founded in 2008 by Laurence Chang and Scott Sinclair, Cascabel Management L.P. announced that it was time to give up the ghost of the poorly performing stock-focused hedge fund. The news is especially bothersome as the fund was backed by Julian Robertson’s hugely successful Tiger Management LLC.

The news of the demise of one more hedge fund in what is looking more like an epidemic reminds the financial community that hedge funds are no place for the faint-of-heart. Indeed, there are a few at the top of the pile that are making a pile, but the thousands of others underneath are struggling, or getting crushed under the weight. According to researcher HRF Inc., as many as 10 percent of all hedge funds close each year.

In its heyday Cascabel was managing up to $350 million, and did well in its first few years, posting a 29 percent rise in 2009. It did not take long, however for the big gains to turn into massive losses. In 2011 the fund lost 18 percent, and in 2014 there was a drop of 17 percent. Overall since inception the fund gained a total of 5 percent.

Cascabel Management, Julian Robertson, Laurence Chang, Scott Sinclair, Tiger Management,

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