Hedge Funds Performance

Passport falls short


After falling in love with John Burbank’s big bets, some investors worry he is now running a not-so-risky business.

  John Burbank

Everything about John Burbank is big. He has expansive macro views on world economic deleveraging and the growing demand for natural resources. His $3.8 billion San Francisco firm, Passport Capital earned 219.7% in 2007 by being on the right side of the subprime credit fallout, and his flagship fund has produced a net annualized return of 19.2% since its August 2000 inception. And with his large frame and full beard, he has a commanding physical presence.

But ever since Passport’s near-death experience in 2008—when the flagship Global strategy lost 50.9%— Burbank