1 Baltic Place, Suite 201D
Croton on Hudson, NY 10520

Market Intelligence

Hedge Fund Profiles

Seaver Wang | March 5, 2012

Here are examples of what can happen with even the best and brightest in the industry.

Victor Niederhoffer

Education: Harvard, U. of Chicago- Doctorate, Professor at UC Berkeley


  • 5x U.S. National Squash Champion
  • 1x North American Squash Champion
  • Known as Father of Quantitative Investing

Career Notables:
1982-1990: Partner at Soros Fund Management
1982-1996: Averaged 35% annual returns
1996: Ranked #1 hedge fund by MarHedge newsletter
1997: Lost over 50%  in Thai investments and went into debt, closed fund
2002: Started Matador Fund
2006: MarHedge Ranks Niederhoffer’s funds top Commodities Trading Advisor for 2004-2005
2007: Loses 75% and closed down fund

John Merriwether
Northwestern University, U. of Chicago- MBA,
Former Vice Chairmain of Salomon Brothers- Left during Treasury securities trading scandal
1994: co-founded LTCM
1998: LTCM investors wiped out.
2000: LTCM closes doors
1999: JWM Partners formed
2007-2009: main fund lost 44%
2010: starts JM Advisors

Long Term Capital Management (LTCM)
1994-1997: averaged nearly 40% annually
1998: Heavy losses from East Asian and Russian financial crises, consortium of 15 banks bails out fund for with $3.6 billion. Investors wiped out. Investments were leverage as high as 250-to-1

Myron Scholes
Professor at MIT, U. of Chicago, and Stanford University
Won Nobel Prize 1997 in economics
Co-founder LTCM
Chairman of Platinum Grove Asset Management- lost 38% in 2008 (where’s the hedging?!?)

Robert Merton
Professor at Harvard and MIT
Won Nobel Prize 1997 in economics
Co-founder LTCM

John Paulson

Education: NYU, Harvard- MBA
Worked at Boston Consulting and Odyssey Partners

Career Notables:
1994: Founded Paulson & Co.
2007: One of his funds returned 590% from betting against the subprime mortgage market
2008: Positive double-digit returns
2011: Main funds down over 50%


Leave a Reply

Representatives are registered through, and securities are sold through NPA Financial Services, Inc., Member FINRA/SIPC, located at 115 West Century Road, Suite 360, Paramus, NJ 07652. Investment advisory services are offered through Karagosian Financial Services. Insurance sold through licensed NPA Insurance Agency, Inc. NPA Financial Services, Inc. and Karagosian Financial Services are non-affiliated entities.


Site by Spruce Moose Labs