Manager 'truly sorry' for blowing up hedge fund

[FLPanhandle]

Source: CNBC

A hedge fund manager told clients he is "truly sorry" for losing virtually all their money.
Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March.

"I take responsibility for this terrible outcome," Li wrote in a letter to investors, which was obtained by CNBC.com.

"My only hope is that you understand that I acted in an attempt—however misguided—to generate higher returns for the fund and its investors. But even so, I acted overzealously, causing you devastating losses for which there is no excuse," he added.

Read more: http://www.cnbc.com/id/102356275

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Lose almost $100 million, I guess a sincere "sorry" is good enough.

[belzabubba333]

1. im surprised he wasnt tossed out a window like the others

[AtheistCrusader]

9. The day is young.

[belzabubba333]

10. ok that was funny

[rurallib]

2. I am sure they will understand and accept his apology

[TheCowsCameHome]

3. Well, *pfffft*, everybody makes mistakes now and then.

No big deal. Now step out onto this ledge and tell me whay you see down there...............

[christx30]

21. "That big thing down there is AMAZING!

It needs a big name. Big and round... round... ound... GROUND! I wonder if it'll be friends with me?"

[louis-t]

4. "I'm writing to you from an undisclosed location"

"Don't try to find me, as I won't be home that day."

[merrily]

6. Li, is that you?

[merrily]

5. I hope Carnasie Capital and Li are lawyering up. That apology is a lawsuit waiting to happen.

[Roy Rolling]

7. "truly"

Well, he said he is *truly* sorry. I can accept that, but a simple "I'm sorry" without the "truly" would have been a different story.

More than likely, all of that lost money is now in the hands of even bigger weasel hedge fund managers than Li.

[LuckyLib]

8. Yup, it trickled up. The investors need to hear that.

They gambled and lost. Oops!!

[hatrack]

11. Or he could try this approach . . .

[FLPanhandle]

12. Hell, I thought I knew all the Monty Python skits.

That was great!

[NCjack]

14. hatrack, play it again when appropriate for DOJ and the bankers. nt

[Pathwalker]

13. Did he go long on oil, expecting it to keep rising?

Idiot.

[Lucky Luciano]

15. Most likely got sliced and diced by the Swiss franc.

More people than I thought had shorted the Swissy vs the Euro on expectations that the Swiss would not allow the pair to breach the 1.20 level that the Swiss National Bank set up to prevent the franc from getting too strong. The SNB had to sell a lot of francs and buy a lot of Euros to do this. With the onset of European QE, the SNB decided to drop the peg forcing s spectacular strengthening of the Franc vs the Euro only a couple days after the SNBsaid the peg was vital.

Why did some people do this? Because they believed the SNB, so they felt safe shorting the EURCHF pair and collecting the interest rate differential between the franc and the Euro - Francs have an even lower rate than Euro. A classic carry trade in other words - where extremely low volatility coupled with interest rate differences generates returns. Dropping the peg caught these people off guard and they got clobbered by an initial 41% move that settled to a 20% move. Before that, a one standard deviation move for the entire YEAR (as opposed to a one day move) was 1.75%.

[Hubert Flottz]

16. Hanging him would make a great example!

IMHO...

[Liberal_in_LA]

17. seems like an Onion article

[blkmusclmachine]

18. Savvy!

[Kablooie]

19. As long as you're truly sorry I guess it's okay.

Now put this gun to you're head and pull the trigger so I can be sorry that you're dead.

[Tace]

20. Believe It Or Not, This Isn't A Big Deal

Hedge funds, by definition, are funds for wealthy people to invest money that they can easily afford to lose. They generally take more risk in order to potentially generate higher returns.

This is stated up front by a hedge fund when someone seeks to invest with them.

Nobody is eating cat food or had their retirement wiped out.

It's embarrassing for a hedge fund manager to lose the funds, but it is clearly stated as a definite possibility in paperwork that investors must sign in order to invest.

Owen Li may just turn around and start another hedge fund. And, he may find wealthy people willing to invest.