From Reuters:
HT: FINalternatives
The manager running Henderson Global Investors' (HGGH.L) equity hedge fund is sticking with his bets on oil and gas and mining shares, despite the fund losing more than 40 percent in 2011 after a number of mistimed leveraged punts.
Stephen Peak's European Absolute Return Fund, which wagers money on stock prices rising or falling, fell 42 percent versus around an 8 percent drop in the HFRI Equity Hedge (Total) Index.
Peak, who is also Head of Pan European Equities at Anglo-Australian fund manager Henderson, made leveraged bets, which involve borrowing money to increase the size of positions, that share prices would rise, including oil giant BP (BP.L).
particularly the mid-cap exploration firms which Peak favours, and where exiting institutional money caused a liquidity crunch and further price falls.
But sovereign debt jitters sparked a sell-off in volatile oil and gas stocks,
"He's (Peak) scaled some of the positions down, but he still thinks fundamentally these stocks are massively undervalued. The problem has been the macro environment," Paul Graham, Global Head of Hedge Funds at Henderson, said....MORE
[go ahead, I know you want to -ed]
WHAT THE HELL?
What the hell? How does a so-called professional let a loss get to that size? What the hell?
Thank you.
