The writing was on the wall three weeks ago when we reported that iconic hedge fund Perry Capital had lost some 60% of his AUM as LPs were rushing to withdraw their money.
As we reported on September 10, citing Bloomberg, Perry Capital’s assets slumped to $4 billion as of the end of August compared with $10 billion in September last year. The reason for the tremendous outflows is that Perry has posted losses of 18.4% from the beginning of 2014 through July of this year. The fund declined 2.6% in the first seven months of this year after losing 12.6% in 2015.
Curiously, as on numerous previous occasions, while Perry’s losses aren’t even that substantial, in a time when the S&P500 just can’t go negative courtesy of central banks, LPs patience has become non-existent (however, a shocking outlier in this regard is Bill Ackman’s Pershing Square, where the LPs have continued to amaze the investing community by not redeeming what’s left of their assets despite one terrible investment decision after another).
This post was published at Zero Hedge on Sep 26, 2016.