Hedge-fund titans James Simons and Stephen Mandel are showing the biggest losses of their careers in the $1.9 trillion industry's worst start in more than a decade.
Simons's $18 billion Renaissance Institutional Equities Fund declined 12 percent since its value peaked last May, investors with direct knowledge of the situation said. Mandel's Lone Cedar Fund dropped about 10.6 percent from its high in December, according to people familiar with the fund.
Hedge funds lost an average 2.78 percent of their value in the first quarter, according to data compiled by Chicago-based Hedge Fund Research Inc. The debacle shows the extent to which frigid credit markets, depreciating homes and an economy exhibiting all the signs of a recession are wreaking havoc on even the savviest investors.
``This dislocation is so broad based that it's touching a lot of corners of the market that you wouldn't think would have been affected to this extent,'' said Larry Chiarello, director of research at Red Bank, New Jersey-based Riverview Alternative Investment Advisors LLC, which invests in hedge funds.
Losses haven't been confined to one or two investment strategies. Mandel and Simons approach investing from opposite directions.
Mandel, 52, picks stocks based on company fundamentals, a skill he learned at Julian Robertson's Tiger Management LLC. He left Tiger in 1997 to start Greenwich, Connecticut-based Lone Pine Capital LLC the following year. Simons's Renaissance Technologies Corp., based in East Setauket, New York, has spent more than 15 years developing computer models that pour through billions of pieces of data to select securities to buy and sell.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5R7vjeKPqHA&refer=home
....are wreaking havoc on even the savviest investors....OMG, James Simons RenTec is decllining 12 % ! aj, aj, aj...for how many years did he and RenTec outperform benchmarks ?....
Simons's $18 billion Renaissance Institutional Equities Fund declined 12 percent since its value peaked last May, investors with direct knowledge of the situation said. Mandel's Lone Cedar Fund dropped about 10.6 percent from its high in December, according to people familiar with the fund.
Hedge funds lost an average 2.78 percent of their value in the first quarter, according to data compiled by Chicago-based Hedge Fund Research Inc. The debacle shows the extent to which frigid credit markets, depreciating homes and an economy exhibiting all the signs of a recession are wreaking havoc on even the savviest investors.
``This dislocation is so broad based that it's touching a lot of corners of the market that you wouldn't think would have been affected to this extent,'' said Larry Chiarello, director of research at Red Bank, New Jersey-based Riverview Alternative Investment Advisors LLC, which invests in hedge funds.
Losses haven't been confined to one or two investment strategies. Mandel and Simons approach investing from opposite directions.
Mandel, 52, picks stocks based on company fundamentals, a skill he learned at Julian Robertson's Tiger Management LLC. He left Tiger in 1997 to start Greenwich, Connecticut-based Lone Pine Capital LLC the following year. Simons's Renaissance Technologies Corp., based in East Setauket, New York, has spent more than 15 years developing computer models that pour through billions of pieces of data to select securities to buy and sell.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5R7vjeKPqHA&refer=home
....are wreaking havoc on even the savviest investors....OMG, James Simons RenTec is decllining 12 % ! aj, aj, aj...for how many years did he and RenTec outperform benchmarks ?....
