One Year Ago
»» Duquesne Capital Management was up about 18% year to date. That was after Stan Druckenmiller’s fund eked out a 3% return in 2008 because of a large cash holding, according to an investor. At the end of 2008, the firm had as much as $745 million in U.S. stocks, down from about $5.8 billion in the middle of 2008.
That, apparently, wasn’t enough; Duquesne is now closing and Druckenmiller is retiring. According to Bloomberg, Duquesne was down 5% as of August 2010, which, if not turned positive, would be the fund’s first losing year in 30. The money manager for $12 billion returned an average of 30% annually since 1986.
»» Och-Ziff Capital Management reported a net loss of $250.2 million for the first nine months of the year, bringing assets under management to $22.6 billion. Despite its funds posting single and double-digit gains, the losses were attributed largely to the company’s reorganization and then its IPO. The quarterly report noted the amortization of expenses tied to equity interests would likely result in a net loss each quarter through the end of 2012.
In 2010, Och-Ziff took in more money than almost any other fund, a net of $2.7 billion in the first three-quarters of the year, according to Bloomberg. That large inflow happened as its funds have had positive but unspectacular returns.Five Years Ago
»» It was whispered that Millennium Partners would pay in excess of $100 million to settle mutual fund timing charges being investigated by the Securities and Exchange Commission and New York State Attorney General Eliot Spitzer. Israel “Izzy” Englander’s then-$5 billion Millennium had been in talks with Spitzer’s office and the SEC to settle charges that the fund group improperly traded mutual funds after the market close and for allegedly trying to conceal those trades from regulators.
Indeed, a $189 million settlement was reached by December. Millennium was ordered to disgorge $121.4 million in “ill-gotten revenues,” Englander to pay $30 million in civil penalties; and two management companies owned by Englander to pay $26.6 million. Two other top executives at Millennium and a securities trader also paid penalties and were sanctioned. All the funds went to restitution for mutual fund shareholders.
But Millennium survived as strong returns kept investors in the fold. This year, flagship Millennium International gained 7.32% through September 2010, and the firm managed $7.1 billion as of July 1.
