Dallas-based Carlson Capital’s Black Diamond Thematic account has mislaid 14.2% net this year by Jul 31, according to a customer refurbish reviewed by Business Insider, and bitcoin insanity is partly to blame.
The $1 billion equity long-short account had been adult about 10% after fees around this time final year, Business Insider formerly reported. Carlson Capital manages about $9 billion firmwide.
“We are naturally unhappy by a opening of a initial half of 2017,” a portfolio managers, Richard Maraviglia and Matthew Barkoff, wrote in a fund’s second-quarter letter, that was also reviewed by Business Insider.
In a letter, antiquated June, Maraviglia and Barkoff pronounced their fund remained brief a batch market, particularly in a semiconductor space. But a swell in seductiveness in bitcoin and ethereum has pushed shares of semiconductor makers higher. Their chips are used in a computers that solve formidable equations to cave for cryptocurrencies.
From a minute (emphasis added):
“Our biggest brief thesis given a initial entertain has been semiconductors where we see high inventories, double ordering, large capex supply responses and tangible pockets of weakening direct in smartphones, autos, and a Chinese visual market. Nonetheless, a zone has incited into something of a burble characterized best by a swell in GPU stocks, Advanced Micro Devices and Nvidia, driven by a cryptocurrency mania. Bitcoin and Ethereum have depressed neatly over a past month, and we trust they will tumble a lot more. We trust a other side of this impossibly absolute accord pierce in record will be really essential for us though to date, it has been a poignant drag on performance.”
Carlson’s flagship fund, Double Black Diamond, LP, is also down for a year, losing -2.1% this year by a finish of July. That account had only over $5 billion in resources as of 2013, owner Clint Carlson told trade announcement PI.
The organisation has 7 supports in total. Here’s Carlson’s scorecard for a firm’s 5 other funds, this year through Jul 31:
- Double Black Diamond, LP: -2.1%
- Black Diamond Partners, LP: -3.7%
- Black Diamond Relative Value Partners, LP: -3.2%
- Black Diamond Arbitrage Partners, LP: 6.2%
- Black Diamond Mortgage Opportunity, II: 5.6%
- Black Diamond Energy, LP: -6.8%