Even the pros blow up

[abattia]

Quote from Clubber Lang:
"our total return for the year is –95.83 pct and -89.63 pct since inception .... Ebullio Capital Management LLP is also strong and has, as a token of confidence in the future, waived its 2 pct management fee for 2010."

LOL! LMHO! Hilarious! How can people be so gullible? It's extraordinary ... can a fool and his money be so easily parted?

 

[zdreg]

Quote from achilles28:

Hard to believe such incompetence gets rewarded with that much cash.

They had 50 million AUM before the 96% "drawdown".

Proves the fund industry is more about marketing/perception, than anything else. Cudos.

what is not about marketing/perception?
did obama get elected on his record?

 

[zdreg]

Quote from TheGoonior:

The pamphlet does have some brilliant gems, though. These include the understated "whilst our NAV is impacted to the low side," the oxy-moronic "our opportunistic, aggressive yet conservative Capital Manager," and the mention of option purchases which was "money well spent and essential to manage downside risk" (evidently -69% in Jan and -85% in Feb is risk management).

I'm not very familiar with the markets they mentioned. Did they have large positions on some illiquid contracts or something?

hiliarious.
The good news is that whilst our NAV is obviously
impacted to the low side by this, the Fund continues
to do business as usual. The liquidity position
of the Fund is strong with in excess of USD 40 million
in cash and since the remaining physical book
is very profitable going forward, we view the future
with confidence (this confidence is being justified
by our March month-to-date result which is
showing a plus of more than +10 pct at the time of
writing).
_________________
sell to whom?

http://www.opalesque.com/Commodities_Briefing/?p=105624

 

[Halal Burger]

oh oh, looks like they lied to investors too:

http://www.businessweek.com/news/20...e-fund-says-january-loss-was-70-not-1-1-.html

 

[laserwolf]

guys this is not as bad as it seems:

"The monumental losses are certainly new for Ebullio, which debuted in 2008 with US$4 million. The firm soared 92% its first year and returned another 29% last year, before giving it all back and more over the last two months."

http://www.finalternatives.com/node/11790

 

[Pension_Admin]

I think making 90% doesn't offset the loss they had with the 90%+ loss. The 90%+ loss actually wiped out the initial capitial if you do the math right.

It is as bad as it seems.

 

[kxvid]

Blowup? I'd consider -25% trading futures to be a blowup. Losing -95% is actually hard to do trading futures due to margin calls. Once your basis goes below you maintenance margin you get liquidated unless you post collateral. These guys were doing something seriously wrong and it had nothing to do with "being dealt a bad hand". Perhaps they were long a bunch of puts that expired worthless, or short base metal calls.