“World’s Most Bearish Hedge Fund” Shuts Emerging Markets Unit After 17% Loss

Jon Alternative Media, Blogosphere, Market Commentary

We had previously dubbed Horseman Capital the world’s most bearish hedge fund for one reason: as recently as a few months ago the firm’s Global Fund had taken its net equity short position to an unprecedented -100%. Horseman is now in the news once again as it is liquidating an emerging markets focused hedge fund following losses totaling 17% this year and difficulties raising capital, according to a letter sent to investors.
‘In light of fund returns and lack of investor interest, the directors of the fund have sadly decided to close the Horseman Emerging Market Fund Ltd.,” according to the letter seen by Bloomberg News. A spokesman for the London-based firm confirmed the contents of the letter.
“The resulting performance squeeze since February has made holding short positions a near impossibility for many funds and is typical of a true bear market,” Burke said in the letter.

This post was published at Zero Hedge on Oct 28, 2016.