Since he launched his hedge fund, Centaurus in 2002, he managed an annual growth rate of about 125% and stellar returns.
But for a host reasons last year (a gas glut, new regulation) he was forced into an 11th-hour asset sale to patch up the losses in his portfolio, AR reports.
And apparently one of those reasons is a reckless mystery trader.
People close to Centaurus say it was not [Arnold] but one of his traders who drove returns into the red with a bullish natural gas bet that dragged down the fund’s performance.
At the end of October, Centaurus was down more than 8% for the year.
By December those losses weren’t as bad – in total the fund lost 4% of its value in 2010, compared to the previous year, but for a guy who’s not used to losing, that had to hurt.