Hedge Fund Loses All Value in 7 Days
Among hedge funds known for quickly losing value, the Eifuku Master Fund reigns supreme.
The hedge fund performed gloriously in 2000 and 2001, with gains of 18% and 76%, respectively. But substantial leverage (borrowed funds three times the amount of equity) and trading losses caused the fund to implode in just 7 days.
The swift reversal demonstrates just how volatile hedge funds can be.
Source: Wall Street Journal, January 24, 2003
|
