Oscar Schafer's OSS Capital Management has had a rough 2010.
Its flagship long/short OSS II fund, which manages $500
million, is down 5.1% this year through July, with most losses
having occurred in the second quarter. "This was another
quarter where 'macro' concerns dominated the markets," Oscar
Schafer wrote in an investor letter dated August 5.
Schafer, who served as an analyst and portfolio manager for
Michael Steinhardt in the 1970s and early 1980s, blamed a weak
recovery in the U.S., the sovereign debt crisis in Europe,
tighter policies in China, the oil spill in the Gulf, and
debate over the financial regulatory reform as reasons for poor
performance. Since its 2001 inception, fund's annualized
returns are 8.8%. Through June, the fund was down 7.7%, but the
fund recouped some of its losses by posting returns of 2.82%