Another One Bites The Dust

Another hedge fund, that is. Despite the market being up more than 200% since the depths of the financial crisis, some hedge fund managers have somehow managed their billions of investments into the ground.

Richard Perry will shutter his hedge-fund firm after billions of dollars in investment losses and client defections.

The longtime hedge-fund manager told clients in a letter Monday “the industry and market headwinds against us have been strong, and the timing for success in our positions too unpredictable.”

Perry’s eponymous firm has lost more than 60% of its assets under management since November 2014, when it managed $10.4 billion. Its main fund lost more than 12% last year, much of it from a bad bet on Fannie Mae and Freddie Mac, and was down 1.3% this year through August, said a person familiar with the matter.

Perry won’t give back all of the remaining money immediately. He committed in the letter only to returning “a substantial amount of the fund’s capital” starting next month. Some of the remainder won’t be cashed out for more than a year, the letter said. Bloomberg News earlier reported Perry’s shutdown plans.

Ahem, notice how he excuses his own poor actions by claiming that headwinds arrayed against him were too strong, even though the overall market was up. Also note that he doesn’t have plans to return all the investors’ money. Why would anyone pay these guys in the first place, given this kind of performance?

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