Over $120M invested in a CTA which lost...

[DT-waw]

89% of capital from July 2008 to Feb 2009!
http://www.autumngold.com/Advisor/Statistics/cta_profile.php?op=profile&id=359
8 months in a row each losing over 10%. One month was -49%
Investors seem to think its a good place to invest money.

Oh, and management fee is only 4% a year

 

[Rodney King]

Looks to be a levered version of their program, hence the huge run-ups and drawdowns. A CTA that lost anything like 90% in their plain vanilla program wouldn't still be in business.

It does appear a large subscription came in just before their meltdown. Murphy's Law...

 

[marketsurfer]

Lots of wealthy gamblers out there. Throwing several million into a fund is like buying a scratch off ticket to the super rich. surf

 

[1a2b3cppp]

What kind of PR department do you need to tell investors you lost 89% of their money?

 

[marketsurfer]

if you blow up big on wallstreet, it's actually easier to raise money---

weird but history proves it as true.

surf

 

[bond_trad3r]

Quote from marketsurfer:

if you blow up big on wallstreet, it's actually easier to raise money---

weird but history proves it as true.

surf

Hmm.... The return of Dick Fuld?