Saturday, December 29, 2007

Buy High; Sell Low

Bloomberg (12.29.07), via Eschaton:
"Drake Management LLC suspended most redemptions from its largest hedge fund after losing 23.7 percent through November, according to a letter sent to investors of the New York-based firm.

Drake will meet about 25 percent of requested withdrawals from its $3 billion Global Opportunities Fund, which tries to profit from macroeconomic trends by trading bonds, stocks, currencies and commodities."

Drake Management Curtails Withdrawals From Largest Hedge Fund

On the other hand, if you buy in at an all-time high, don't start whining if the price subsequently drops. Financial Times (12.13.07):
"Last year the fund, a global macro specialist that focuses on bond and currency investments, returned 41 per cent."

One investor said: 'Unfortunately most people put their money in after the ’06 gains so now they are looking to redeem.'"

Drake’s flagship fund runs off course

UPDATE: Drake has a couple of mutual funds. If you wanted to buy into either of these, you'd have to pony up a minimum of $5 million. Point being is that folks investing in this Global Opportunities Fund might be stupid, but they're probably not poor.

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