Salida Capital, the once loved commodities hedge fund may be nearing death.
See the link below for details why.
They also released this additional commentary on their performance for May.
I don't know how any investor can withstand that kind of wild ride. Hedge funds have no advantage over an individual investor provided that investor has the right character traits. Intelligence not required.
In the addition commentary they discuss how loyal their investors are. Appealing to your investors loyalty seem pretty desperate to me.
I particularly enjoyed this quote from the commentary letter.
Though we have reduced our exposures to weather this volatility storm, we believe timing the market is an impossible task. We believe we must “take a side” in order to generate wealth over the long term.
Maybe it's just me but I have a hard time making sense of these two statements. On one hand they don't believe in timing the market yet on the other hand they must "take a side" (or speculate) in order to generate wealth. What if they continue to be on the "wrong side?"
They continue to speculate that the US Federal Reserve will do QE3 and investors will flock to commodity investments.
I believe they won the ebay auction to have dinner with Buffett a few years ago. Not sure what they learned but it doesn't seem to be paying off.