A fund at $9 billion Carlson has lost nearly 20% this year

[dealmaker]

A fund at $9 billion Carlson has lost nearly 20% this year

• Rachael Levy

Bobby Yip/Reuters

Carlson Capital's Black Diamond Thematic fund has added to its losses this year, and is down 19% after fees this year through September 30, according to a client update seen by Business Insider.

The long-short equity fund had previously lost 14.2% net this year through July 31, according to a client update previously reported by Business Insider. The fund managed $1.1 billion at the end of August, according to an investor. A spokesman for Carlson declined to comment.

It's unclear what caused the further decline. However, in a June letter, the fund partially blamed bitcoin mania for the drop in performance. The portfolio managers, Richard Maraviglia and Matthew Barkoff, said their fund remained short the stock market, notably in the semiconductor space.

But the surge in interest in bitcoin and ethereum has pushed shares of semiconductor makers higher. Their chips are used in the computers that solve complex equations to mine for cryptocurrencies.

The firm has seven funds in total. Here's Carlson's scorecard for the firm's five other funds, this year through September 30:

• Double Black Diamond, LP: +2.9%
• Black Diamond Partners, LP: -4.6%
• Black Diamond Relative Value Partners, LP: -1.76%
• Black Diamond Arbitrage Partners, LP: +6.95%
• Black Diamond Mortgage Opportunity, II: +6.97%
• Black Diamond Energy, LP: -8.54%

Carlson managed $9.9 billion at the start of the year, according to the HFI Billion Dollar Club ranking.

from BusinessInsider

 

[Clubber Lang]

Pitiful
Still collecting their 2 and 20 though. What a racket. SMH

 

[wintergasp]

Pitiful
Still collecting their 2 and 20 though. What a racket. SMH

Nobody pays 2 and 20.... for soon 10 years now you're happy if you get 0.5% and 15%

 

[lindq]

Nobody pays 2 and 20.... for soon 10 years now you're happy if you get 0.5% and 15%

Am I the only one who has noticed that posters (posers?) with photos of attractive women gain the largest percentage of likes to posts?

Sex sells. Even here.

 

[ironchef]

Nobody pays 2 and 20.... for soon 10 years now you're happy if you get 0.5% and 15%

$10B, 0.5% fee is $50 millions, more than what I make in a year, not too shabby.

 

[helpme_please]

This is a billion dollar fund. Not the small Hugh Hendry or Whitney Tilson fund which recently closed down.

I'm still very puzzled why the big funds which are supposed to be able to attract the best talent can lose money in a bullish year like 2017 when making new highs for the U.S indices is like a daily affair. Biggest mystery of the year why super-smart people did so badly compared to do-nothing idiot passive investors.

 

[ironchef]

This is a billion dollar fund. Not the small Hugh Hendry or Whitney Tilson fund which recently closed down.

I'm still very puzzled why the big funds which are supposed to be able to attract the best talent can lose money in a bullish year like 2017 when making new highs for the U.S indices is like a daily affair. Biggest mystery of the year why super-smart people did so badly compared to do-nothing idiot passive investors.

Because ignorance is bliss. The revenge of the idiot small mom and pop retail traders.

 

[wintergasp]

$10B, 0.5% fee is $50 millions, more than what I make in a year, not too shabby.

Yes but Carlson has a ton of employees, just on LinkedIn you can find 170 of them. Anyone that touches money is usually pay 250k$+ (traders, portfolio managers, etc), some portfolio managers getting 500k - 1m$ in good year.

So at the end of the day, without performance fee, the shareholders of the investment management company don't really make money.

 

[thaitye]

This is a billion dollar fund. Not the small Hugh Hendry or Whitney Tilson fund which recently closed down.

I'm still very puzzled why the big funds which are supposed to be able to attract the best talent can lose money in a bullish year like 2017 when making new highs for the U.S indices is like a daily affair. Biggest mystery of the year why super-smart people did so badly compared to do-nothing idiot passive investors.

Well it might be because these funds use strategies that aren't correlated strongly with the overall market. We all know its about the long run absolute year over year return.

 

[Pekelo]

Oh, journalism is dead:

It's unclear what caused the further decline. ......their fund remained short the stock market,

Gee, I wonder how could they have lost more between July and October when they were shorting high beta stocks in a rallying market????