Select Page

If 2018 were a roller coaster, the last few months of the year would be the tall, steep hill the cars come careening down after spending much of the year climbing almost straight up to the top of that hill. While growth, momentum and tech stocks continued their dramatic run through much of the year, they took the rest of the equity market with them when they finally crashed—leaving value-focused funds without the gains they were expecting to see when the crash of growth finally came.
JoaquinAranoa / Pixabay
Corsair Capital Management was down 11.5% for the fourth quarter, bringing the fund’s full-year return for 2018 to -12.3%. The HFRI – EHI index was down 8.3% for the fourth quarter, while the S&P 500 declined 13.5% and the Russell 2000 was down 20.2%. For all of 2018, the HFRI – EHI was down 6.9%, while the S&P was down 4.4% and the Russell 2000 was down 11%.

if (typeof jQuery == ‘undefined’) {
document.write(”);
}

.first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important}

form.ebook-styles .error,
form.ebook-styles #error {
color:#d00;
}
form.ebook-styles .formfields h1,
form.ebook-styles .formfields #mg-logo,
form.ebook-styles .formfields #mg-footer {
display: none;
}
form.ebook-styles .formfields {
font-size: 12px;
}
form.ebook-styles .formfields p {
margin: 4px 0;
}

Get The Full Seth Klarman Series in PDF
Get the entire 10-part series on Seth Klarman in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q3 hedge fund letters, conference, scoops etc
Shifting away from growth and tech
In their fourth-quarter letter, Corsair Capital Management said the bear market took them a bit by surprise. The fund’s management had been saying for most of the year that it would be a good time to cut exposure to growth and especially tech stocks. They had expected—as most market watchers did—that when growth stocks finally corrected, the extreme imbalance between

Article From: "Michelle Jones"   Read full article