"Hedge Fund Manager Blows Clients’ Money in Three Weeks"

From Barron's Focus on Funds:

Canarsie Capital has a grim message for clients: “a series of transactions over the last several weeks that have resulted in the loss of all but two hundred thousand dollars.”

Juliet Chung and Susan Pulliam report that Canarsie, named for the east Brooklyn neighborhood, told clients on Thursday Tuesday that the $60 million hedge fund lost all but $200,000 of its assets in about three weeks.

CNBC’s Lawrence Delevingne first reported that that Owen Li, the fund’s founder, was contrite about the massive loss:

“My only hope is that you understand that I acted in an attempt—however misguided—to generate higher returns for the fund and its investors. But even so, I acted overzealously, causing you devastating losses for which there is no excuse”

Li, a 28-year old former Galleon Fund Management trader, reportedly ran the firm with Kenneth deRegt, former head of risk management at Morgan Stanley....MORE