1000% hedge fund wins subprime bet

Quote from neke:

If a $2billion fund can return 1000% a year, I just thought that should be a good target for someone with <200K, if you know what you are doing!
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Was it $2 Billion pre- or post-1,000% return? (I ask because I don't have access to the whole article.) If post, then it was not a $2 Billion fund that made such a return, but a <$200 Million fund. Even so, it is thoroughly impressive.
 
Quote from Thunderdog:

Was it $2 Billion pre- or post-1,000% return? (I ask because I don't have access to the whole article.) If post, then it was not a $2 Billion fund that made such a return, but a <$200 Million fund. Even so, it is thoroughly impressive.
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Pre-return. Post 1000%, it came to more than $20billion.
 
Yeah 3.6 billion, these HF guys are breaking compensation records every single year. People that don't know about hindsight bias, and survivorship bias, can easily blow up trying to emulate that kind of success. Its just a matter of time before we start hearing of 20% incentive fees for CEOs as well and then one billion dollar comps. will be the norm for CEO pay as well.
 
No one is LESS impressed by random performance than me.

For instance , an imbecile like Longhorns remembers to breath every few seconds.

Pure random luck. Can't last.


But requiring '10 years' of performance is not much different than saying Warren Buffett can only be judged after 75 years of performance.

At some point you must accept good judgment for what it is.
 
Am I the only one who doesn't have a reading comprehension problem?
The article DOESN'T say the fund had 2 billion under management!!! Actually, it says that Lahde's is one of the smallest funds playing this particular field.

Lahde’s first fund, US Residential Real Estate Hedge V Class A, soared 712.8 per cent in the year to the end of October, before this month’s sell-off pushed it past the 1,000 per cent mark.
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After looking it up in the Barclay HF database:

Administrative Information
Annual Returns: 847%
FUM $ : $ 10.00 M

So that was a 10 million dollar fund when he started it...

His other similar fund the class B started with 21 million.

Start Date
Apr 2007
2007 YTD
222.49%
FUM: $ 21.00
 
On the other hand the best bigger than 1 billion fund return (that I could find) belongs to

Harbinger Capital Partners Special Situations Offshore

They did a 200% return for the last 12 months and up 160% YTD and the fund had 1.8 billion AUM....
 
So looks like the record for best 1 year performance still belongs to the mentioned HF, it had 190 million AUM 5 years ago:

RAB Capital, London hedge fund manager, shot to prominence in 2003 when it returned 1,475.5 per cent in its Special Situations fund, which now runs $2.4bn and is the biggest shareholder in troubled bank Northern Rock.
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It's 5 years performance:

1475%, 49%,26%, 43%, 23% YTD.

So if you invested 1 dollar with them back in 2003 that is 52 dollars now!!!

Performance Analysis

Total Return 5075.63%
 
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