Say what you will about Andrew Lahde, but the man knows how to write a letter.
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Just give up.
Andrew Lahde (he of the 1000 per cent returns) has. Read more
Californian hedge fund Lahde Capital has made more than 1,000 per cent return this year by betting against US subprime home loans, making it one of the world’s best-performing funds of all time. Mr Lahde, whose fund is one of the smallest specialists shorting subprime, has now begun to return money to investors, telling them in a letter that he expected the collapse in value of subprime mortgage-linked securities to be repeated for bonds backed by commercial property loans in a deep recession. “Our entire banking system is a complete disaster,” he wrote. “In my opinion, nearly every major bank would be insolvent if they marked their assets to market.” He also said he would be putting some of his own profits into gold and other precious metals.
Hedge fund managers and big egos generally go together, but Andrew Lahde manages a new high with his latest investor letter, in which he says his Lahde Capital “has the top-rated performance for all hedge funds in the universe” for the year to August.
Santa Monica, California-based Mr Lahde, to be fair, has good reason to boast: Series A of his fund was up 7.9 per cent in August, 410 per cent for the year so far, outpacing even the stellar performance of John Paulson’s (of Paulson & Co) Credit Opportunities fund. Read more