Clarium Capital Management

Clarium Capital Management

Clarium Capital Assets Decline 90% from Peak

While most hedge funds have recovered since the financial collapse, Clarium Capital Management has been in a downward spiral since it made big gains predicting the housing collapse. Clarium Capital, which is managed by Peter Thiel, lost 23% in 2010 adding to the losses suffered by investors. Since the firm's peak, assets have declined an astonishing 90%.
Peter Thiel got rich investing in PayPal and Facebook Inc. before most people knew them, built a hedge fund that at its apex managed $7.2 billion, and forecast the collapse of the U.S. housing market. He also lost almost two-thirds of his clients’ money.

Clarium Capital Management LLC, which Thiel started in 2002 in San Francisco, fell about 23 percent in 2010, the third straight year of declines, according to investors. His fund’s assets are down about 90 percent and clients who stuck with him suffered losses of 65 percent from the mid-2008 peak.

“It doesn’t matter if a manager is correct in his long- term views if they don’t get the timing right or manage volatility along the way,” said Don Steinbrugge, managing partner of Agecroft Partners, a Richmond, Virginia-based consulting firm that advises investors and hedge funds. Source

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