Warning To Steve Cohen: Three Hedge Fund Managers Lost Money When They Bought Sports Teams


Photo: avinashkunneth via flickr

There’s a pretty outrageous article in Bloomberg today that says it’s not a coincidence that three hedge fund managers who started to lose money within a decade of buying a sports team.They are:

  • John W Henry (John W Henry &Co) , bought a principle stake in the Red Sox in 2002, assets are down to $319 million as of Apr. 15 from a peak of $3.4 billion in 2005
  • James Pallotta (Raptor) bought part of the Boston Celtics in December 2002 and then in June 2009, he closed his Raptor Global hedge funds
  • Phil Falcone (Harbinger) bought a stake in the Minnesota Wild in April 2008. Two months later, his AUM peaked at $26 billion. Now he’s down to $7 billion.

Are these things connected? Not at all. Between the time when these 3 bought the teams and lost assets, there was a recession that has a lot more to do with their losses.

But Steve Cohen should watch out anyway, according to Bloomberg.

Click here to see the finance kings who own sports teams >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.