PayPal co-founder and Clarium Capital Management LLC’s founder and president Peter Thiel must’ve been in some amount of distress as he saw his hedge-fund firm tumble by 18 percent. This gave the company a heavy monthly decline, due to losses on bonds. Patrik Safvenblad head of hedge-fund from DnB NOR ASA bank states:
“Clarium is known for taking large risks, and their performance reflects that.”
“Investors can get overly optimistic that periods of strong performance will continue.”
Maybe the fact that Clarium borrowed $4.40 for every $1 in equity capital invested as of Oct. 31, compared with $3.90 for every $1 a week earlier, had something to do with this decline?
