Looking back on Sabretooth’s sharp rates bet and Bruce Kovner’s Santa Barbara dreams

By Rob Copeland

Tue Sep 11, 2012

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AR also revisits the liquidation of 360 Global.


One year ago
»» Sabretooth Capital Management, led by Erez Kalir and Craig Perry, netted 38% in 10 months betting on low U.S. interest rates through its $50 million Yin hedge fund.

That was pretty much the only good news for the Tiger seed, however, as its flagship macro fund collapsed 20.9% in 2011, compared with a 1.17% climb for the Absolute Return Macro Index. In April, Kalir and Perry told investors they had made the " painful decision to dissolve the fund" and all of their other strategies.

"The two of us have really struggled to get in synch and row the firm in unison together over the last six months," Kalir told AR by telephone at the time.

Perry has been hired as a senior analyst with Panning Capital, the upcoming new launch from ex-King Street head trader Kieran Goodwin. As for Kalir, he told AR this week, "I’m still laying the groundwork for my next chapter."

»» Rick Abeyta shut down his $242 million 360 Global Capital following a full redemption by its largest investor, and "historic market volatility," as he termed it in a letter.

The Stadia Capital veteran was down 2.31% for the year through July (full performance here) in an equity strategy focused on media, telecom, energy, utilities, industrials, materials and transports, according to marketing materials. All in all the firm had produced a net annualized return of 6.18% since it starting trading in August 2008.

Abeyta has since signed up as a consultant in an investment role at Rick Gerson’s $1.2 billion Falcon Edge Capital, which launched in July.

See also: 360 Global gains commitments 360 likes tires Startup keeps faith in chicken, video games

Five years ago
»» Caxton Associates founder Bruce Kovner gobbled up 12 adjoining acres in California’s Santa Barbara County in deals totaling $70 million.

The now-retired executive owns an oceanfront estate on property in the area, according to BillionairesHomes.com. Aerial photos show a four-winged estate, with a pool and extensive manicured lawn.

His former colleagues may be less comfortable: Caxton’s $7.2 billion Global Investment macro fund is down 3.32% this year through the end of August, according to an investor update from HSBC Private Bank. The Absolute Return benchmark was up 2.36% during the same time period.

See also: Bruce Kovner donates $20 million to Julliard Q+A with Kovner

ISSN: 2151-1845 / CDC10004H