It must be a recovery

Posted: June 3, 2009 in Uncategorized
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It’s a recession when your neighbor loses his job.

It’s a depression when you lose yours.

So, when is it a recovery?  When a hedge fund manager loses his job.  Read on:

BOSTON — A pair of unrelated Boston-based hedge funds managing a total of more than $1.3 billion separately told investors Tuesday they’re shutting down and returning investor cash because of recent disappointing performance.
Letters from Raptor Capital Management and Noble Partners LP that were obtained by The Associated Press say both firms plan to revamp their investment strategies and eventually offer new funds.
Noble Partners’ George Noble told investors in his $550 billion Gyrfalcon QP and Offshore Funds that “my performance over the past several months of 2009 has been the most professionally disappointing and personally frustrating” of his nearly 30-year career.
“Whatever the reasons for our poor performance, the numbers speak for themselves and are simply unacceptable,” Noble said in a letter to investors about the funds’ 30 percent loss this year.
The closures were also confirmed to the AP by two people familiar with the situations. The persons spoke on condition of anonymity because they were not authorized to speak publicly on the matters. The Wall Street Journal first reported the closures online Tuesday afternoon.
James Pallotta, who heads the $800 billion Raptor Funds, told investors in a letter that his firm has returned an average of nearly 13.9 percent per year since the funds’ inception in October 1993 through the end of last month. That compares with a 6.5 percent return over that period for the Standard & Poor’s 500 index.
But the funds’ performance this year has been “roughly flat,” he said.
Pallotta became a minority owner of the Boston Celtics professional basketball team, and split several months ago with longtime hedge fund partner Paul Tudor Jones of Tudor Investment Corp.

BOSTON — A pair of unrelated Boston-based hedge funds managing a total of more than $1.3 billion separately told investors Tuesday they’re shutting down and returning investor cash because of recent disappointing performance.

Letters from Raptor Capital Management and Noble Partners LP that were obtained by The Associated Press say both firms plan to revamp their investment strategies and eventually offer new funds.

Noble Partners’ George Noble told investors in his $550 billion Gyrfalcon QP and Offshore Funds that “my performance over the past several months of 2009 has been the most professionally disappointing and personally frustrating” of his nearly 30-year career.

“Whatever the reasons for our poor performance, the numbers speak for themselves and are simply unacceptable,” Noble said in a letter to investors about the funds’ 30 percent loss this year.

The closures were also confirmed to the AP by two people familiar with the situations. The persons spoke on condition of anonymity because they were not authorized to speak publicly on the matters. The Wall Street Journal first reported the closures online Tuesday afternoon.

James Pallotta, who heads the $800 billion Raptor Funds, told investors in a letter that his firm has returned an average of nearly 13.9 percent per year since the funds’ inception in October 1993 through the end of last month. That compares with a 6.5 percent return over that period for the Standard & Poor’s 500 index.

But the funds’ performance this year has been “roughly flat,” he said.

Pallotta became a minority owner of the Boston Celtics professional basketball team, and split several months ago with longtime hedge fund partner Paul Tudor Jones of Tudor Investment Corp.

For those who aren’t aware, hedge funds are stock market investment firms that make their money by betting on the failure of other stocks.  Because of the way they make money, there’s a strong incentive for them to shape events behind the scenes by manipulating the news about stocks that they’re investing in.  They are also part of the reason the nation is, at the moment, economically up shit creek without a paddle.  The fewer of them we have, the better off we’ll be.

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