Wednesday, 1 June 2016

From Bloomberg: "Here’s How Asia Hedge Funds’ Top Picks at 2015 Sohn Fared".

Hedge funds have highly paid managers based on generous 2/20 management fees, and one would expect that their top picks would in general perform well, but even they can be horribly wrong, as the article shows. Some snippets:

The hedge fund industry has had its worst start to a year, as measured by performance and capital outflows, since 2009, when the world was reeling from the global financial crisis. Asia-focused hedge funds have lost 2.4 percent this year, according to Singapore-based Eurekahedge Pte. Hedge funds’ woes highlight the difficulty of picking investments based on fundamentals in a world kept on its toes by central bank and government intervention.

  • The three companies’ shares lost more than 20 percent of their value in the past year .....
  • The stock tumbled nearly 34 percent in the one year ....
  • Hong Kong shares of Citic Securities Co. and China Galaxy Securities Co., two of the nation’s largest brokers, have lost almost half their value .....
  • The broadcasters’ shares all fell, with declines ranging from 4 percent to 20 percent. MMG’s Hong Kong-traded shares plunged 45 percent in the past year ....
  • Aoyama’s share price slid 17 percent in the past year.
  • Kyocera’s stock has slid 18 percent in the past year

Never follow recommendations of others blindly, best is always to do ones own homework. In the above cases, one can safely assume that the fund managers were already loaded with the stocks that they recommended.


  1. Perhaps they were following the recommendations of Emperor Capital!