Multi-billion-dollar hedge fund bet against Trump, lost almost a quarter of the assets of its principal fund

I had never heard of Horseman Capital Management, Ltd. until this morning.  But I wonder if they have Nobel Prize-winning economist Paul Krugman as one of their principal advisers.  The sage of Princeton and the New York Times was utterly certain that markets would tank in the wake of Trump’s election:

It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?

Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.

Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.

When a Nobel Prize-winner opines on his specialty, ordinarily it ought to pay to heed the advice, you’d think.  Add to that the endorsement of Princeton and the New York Times, and you have everything an elite person is trained to respect.

Unless it comes from Paul Krugman.

Laurence Fletcher of the Wall Street Journal reports:

The flagship hedge fund at Horseman Capital Management Ltd. was one of the world’s worst-performing hedge funds last year, posting a big loss in the wake of Donald Trump’s U.S. election victory.

London-based Horseman runs about $2 billion in assets. Its main $1.7 billion Global strategy fund lost 24% through Dec. 28, according to numbers sent to investors in an email and reviewed by The Wall Street Journal.

The bulk of the fund’s losses last year came in the final two months—a 12.8% loss in November and a further 7.8% in December. Those equate to losses of around $330 million or more, according to calculations by the Journal.

As  Horseman informs its investors of their losses, presumably it will minimize the damage by pointing out how bad it could have been:

Chelsea Clinton’s husband is shutting down a hedge fund he founded after losing 90 percent of investors’ money.

I had never heard of Horseman Capital Management, Ltd. until this morning.  But I wonder if they have Nobel Prize-winning economist Paul Krugman as one of their principal advisers.  The sage of Princeton and the New York Times was utterly certain that markets would tank in the wake of Trump’s election:

It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?

Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.

Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.

When a Nobel Prize-winner opines on his specialty, ordinarily it ought to pay to heed the advice, you’d think.  Add to that the endorsement of Princeton and the New York Times, and you have everything an elite person is trained to respect.

Unless it comes from Paul Krugman.

Laurence Fletcher of the Wall Street Journal reports:

The flagship hedge fund at Horseman Capital Management Ltd. was one of the world’s worst-performing hedge funds last year, posting a big loss in the wake of Donald Trump’s U.S. election victory.

London-based Horseman runs about $2 billion in assets. Its main $1.7 billion Global strategy fund lost 24% through Dec. 28, according to numbers sent to investors in an email and reviewed by The Wall Street Journal.

The bulk of the fund’s losses last year came in the final two months—a 12.8% loss in November and a further 7.8% in December. Those equate to losses of around $330 million or more, according to calculations by the Journal.

As  Horseman informs its investors of their losses, presumably it will minimize the damage by pointing out how bad it could have been:

Chelsea Clinton’s husband is shutting down a hedge fund he founded after losing 90 percent of investors’ money.

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