The Faber Report

What's Behind Big Hedge Funds Signing Off?


If you were a hedge fund manager and had a few good years and raised a decent chunk of change off of that performance and made a few hundred million or even a billion dollars as a result, what would you do when times got tough?

  • Would you keep running the hedge fund that brought you those riches?
  • Would you keep dealing with your angry investors, many of them the finicky fund of


    funds that hit the eject button after one bad quarter?
  • Would you work to erase a high water mark that might take years of good performance to reach and pay your employees out of your own pocket (since you had no performance fees coming in)?
  • Would you try and scratch and claw your way back to even in a stock market and economy that prove very hard to understand?
  • Or would you kick back? Spend more time with your family, pursue a life long dream that didn’t include making money and try and enjoy your great wealth?
  • There may be lots of different reasons why the large and very successful hedge funds Cantillon, Pequot, Raptor and Alson have called it quits in the last couple of months, but my guess is that each of the managers who ran them asked all of the above questions and came to an obvious conclusion.

    Video: David Faber analyzes recent hedge fund closures ...



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