Hedge funds (and their managers) certainly aren’t immune to a recession. Just last month, hedge funds underperformed the market, with the Hedge Fund Research Inc’s Global Hedge Funds Index down 3.2% vs. a 1.8% decline for the S&P 500. It was their worst month in 5 years.
Since these funds reap almost all of their profits from their share (usually 20%) of gains, some fund managers may need to make extra cash to support themselves. One such manager, Ben Shoval, is trying comedy (Bloomberg):
Hedge-fund manager Ben Shoval, wearing a green Thomas Pink shirt and a $1,600 Giorgio Armani suit, grabbed the microphone last week at New York’s Broadway Comedy Club to riff on his day job.
“A hedge fund is like a mutual fund on steroids,” said Shoval, who manages $260 million for his family’s firm, Ambit Funding. “It’s like the Barry Bonds of investments. Barry goes to Mexico for his juice. We go to the Cayman Islands.”
The line drew a smattering of laughs from the audience of almost three dozen, highlighting the challenge Shoval faces delivering hedge fund humour to a crowd more accustomed to wisecracks about sex and race. His non-financial one-liners got more response during a 12-minute set on Aug. 5.
Ok, we kid, Shoval’s doing just fine. Shoval’s Ambit Bridge Loan Fund has about $220 million under management and returned 5.1% for 2008 through July. Other fund managers, however, could use some comic relief.
Business Insider Emails & Alerts
Site highlights each day to your inbox.