Lars Steffenson wrote possibly the most unfortunate letter to investors in his Ebullio commodity fund back in February.It more or less said, “remember how we told you the fund was down 1.1% in January? It was actually down 70%.”
You’d think it can’t get worse than that. Unfortunately, the fund is down 96% YTD.
Thanks to FTAlphaville, we get a look at Steffenson’s most recent letter to investors, in which he completely owns up to the massive losses:
Most Managers would probably try to hush this up and not send out this Newsletter, but we have always been about transparency and having broadcast our winning months, we are going to do the same with our (albeit quite a lot more spectacular) losers and take the heat that comes with the territory.
Nice one, but most managers don’t lose 96%. That is not a number you can run from.
Now read this if you want to see how exactly Ebullio lost so much money.