What Goes Up Can Also Come Down

November 10, 2015 Ryan James Hedge Fund News

The ‘hot-shot’ trader Nehal Chopra with the meteoric rise in fame has finally been brought down to earth in what seems to be one of the quickest and severest money-losing streaks in what has been a pretty bad year for hedge funds.

Chopra acquired her stardom when the 21-year-old Wharton graduate found favor in the eyes of hedge fund mogul Julian Robertson of the Tiger hedge fund dynasty before she turned 30. With Robertson’s backing she became one of only a handful of women managing portfolios with over $1 billion.

Unfortunately she recently joined a new, and more populated club: that of hedge fund managers reporting losses. In the past three months Chopra’s Tiger Ratan Capital Fund lost about one third of its value, about $300 million. The loss erased over half of her profits for 2014 and all her gains for 2015.

The blame for the disaster has been place squarely on the shoulders of Valeant Pharmaceuticals International. Due to some questions about the company’s pricing strategies, accounting and business practices share prices of Valeant have tumbled by 43% this year. Other hedge funds, heavily invested in Valeant, have also experienced losses, including Lone Pine Capital and Pershing Square Cap Management, with no less a trading superstar than William Ackman at the helm.

Julian Robertson, Nehal Chopra, Tiger Ratan Capital Fund, William Ackman,

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