Wednesday, April 25, 2012

"Five Hedge Fund Managers Who Lost Their Superstar Status"

From Institutional Investor:

Oh, how the mighty have fallen.

One of the more interesting things to learn from the newly required ADV filings for most hedge funds is the size — or rather lack thereof — among a number of one-time superstar managers. These are guys who either saw their firm’s size shrivel up from lousy performance or are trying to launch their next act in this newer, tougher world.

At least five well-known managers now reported assets of less than $1 billion: 

Peter Thiel, Clarium Capital: Billionaire Thiel may be one of the most brilliant tech venture capitalists in the world. He co-founded PayPal and made early shrewd investments in Facebook, LinkedIn and at least a dozen other firms. However, the 44 year-old’s macro hedge fund has all but crashed and burned. After peaking with more than $7 billion under management in 2008, total AUM has crumbled to $432 million, according to his recent ADV, thanks in large part to losses of 4.5 percent in 2008, and declines in the mid-20 percent range in 2009 and 2010 as the billionaire remained bearish on the U.S. economy.

Paul Touradji, Touradji Capital: The commodities specialist has apparently missed many of the big rallies in the past few years. After peaking at around $4.5 billion in 2008, the Tiger Cub posted single-digit returns the following two years and AUM has dropped to $890 million. The volatile manager has also been embroiled in lawsuits with former partners and business associates....MORE