Top Hedge Fund Manager Losers of 2008 ~ market folly

Monday, March 30, 2009

Top Hedge Fund Manager Losers of 2008

Late last week, we posted up the Top 25 Hedge Fund managers of 2008 in terms of compensation, and now its time to check out Alpha's 'Biggest Losers' of 2008. And, there are some pretty prominent names on the list. Here it is:

  1. Citadel's Ken Griffin: Personal wealth down $2 billion after their two flagship funds lost over 50% in 2008.
  2. ESL Partners' Eddie Lampert: Lost $1 billion in wealth due to losing positions, including his painful Sears Holdings (SHLD) stake.
  3. SAC Capital's Steven Cohen: Personal wealth down around $750 million due to his funds being down over 18%.
  4. Tontine Associates' Jeffrey Gendell: After chronicling Tontine's misfortunes all throughout the year, we learn that Gendell has lost around $625 million in personal net worth.
  5. Lone Pine Capital's Stephen Mandel: He suffered losses with his overseas funds which were -26% and -32%, causing his worth to decline $550 million.
  6. BP Capital's T. Boone Pickens: We've also documented Boone's struggles, as his bad wagers on oil really hurt him. He lost $450 million as his energy fund was down around 60%.
  7. Appaloosa's David Tepper: He lost $425 million as his funds were down over 25%.
  8. Icahn Enterprises' Carl Icahn: Large positions in Motorola (MOT) and Yahoo (YHOO) really hurt him, as his fund was down 35% for 2008, causing Icahn to lose $400 million.

As you can see, some very prominent names, many of whom we've covered on the blog. 2008 was definitely a year to forget for many funds. Alpha's list tallied personal wealth losses of $6.2 billion. We'll have to see if these managers will fare better in 2009. While these gentlemen lost money last year, things could have been a lot worse. They are relieved they aren't on this list: 2008 hedge fund closures. Check out just how well (or poorly) other major hedge funds fared in our 2008 year-end performance figures, and also our recent look at 2009 January & February performance.

For the other side of the trade, make sure to check out the Top 25 Hedge Fund managers of 2008 in terms of compensation as well.

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