Lars Steffenson’s Ebullio fund is down a spectacular 96% YTD.
He came clean to their investors in a letter last month, letting them know that the fund had royally screwed up and reported a -1.1% return In January when it had in fact been close to -70%.
This news of course left everyone wondering, what the heck happened?
This morning, FT Alphaville has a great breakdown of what went wrong.
They found a report from Reuters in November 2009 that says Ebullio had control of almost 90 per cent of London Metal Exchange tin stocks and cash contracts.
Then China announced tightening measures in January and this happened –>
Ebullio also lost money in copper and nickel. Here’s how those did.
And that is why Ebullio’s commodity fund performance looks like this: