Hedge Fund Manager and Third Way Board of Trustee Loses $1 Billion of Investor Money

[brentspeak]

The "Third Way" -- same people who have infiltrated the Democratic party with middle-class destroying "free trade" deals and plots to cut your Social Security benefits.

http://www.nytimes.com/2015/04/17/business/dealbook/after-1-billion-loss-senior-citadel-manager-derek-kaufman-steps-down.html

After $1 Billion Loss, Senior Citadel Manager Derek Kaufman Steps Down

By ALEXANDRA STEVENSONAPRIL 16, 2015

A senior manager at the hedge fund Citadel has left after losing $1 billion of investors’ money last year.

Derek Kaufman, the head of global fixed income and a member of Citadel’s portfolio committee, resigned two weeks ago, according to Katie Spring, a spokeswoman for the firm. His trades are being wound down and liquidated, she added.

Mr. Kaufman ran a portfolio for investors that placed bets on currencies, interest rates and sovereign bonds around the world. Those trades included complex and nuanced wagers on the direction of interest rates. He also oversaw a team of 18 managers within the Global Fixed Income Fund, which manages $4 billion.

When the market turned against Mr. Kaufman’s trades last year, there was little he could do to stanch the losses, said a person briefed on the investments but not permitted to speak publicly. Over all, the fund gained 0.75 percent in 2014, the person said.

From Derek Kaufman's linkedin profile:

Derek Kaufman is Head of Global Fixed Income and a member of Citadel’s Portfolio Committee.

Prior to joining Citadel in 2008, Mr. Kaufman was a Managing Director at JPMorgan Chase, where he most recently served as Global Head of Fixed Income in the Proprietary Positioning Business. He started at J.P. Morgan in 1996.

Mr. Kaufman is a member of the Treasury Borrowing Advisory Committee and the Federal Reserve Bank of New York’s Investor Advisory Committee on Financial Markets. He is a member of the Economic Club of New York, on the Board of Trustees for Third Way, an innovative think-tank in Washington, D.C., and on the Leadership Council of Robin Hood.

Mr. Kaufman received a bachelor’s degree in Applied Math/Economics from Harvard College.

[Thinkingabout]

1. I almost read your post but after the first line or so I exited.

[brentspeak]

3. That's nice. You a fan of the Third Way?

[daredtowork]

7. Previously self-described as

Third Way but also claims to be Union Member, who wants to address the "cheaters" on SSI..

Make of that what you will.

[sabrina 1]

10. Well, if you don't want to know who is responsible for dragging the Dem Party to the Right, that's

your decision. I want to know, and do know now, so we can start eliminating them from our party. We have one Right Wing Party, we don't need two. And the Board of the Third Way is made up of investment Bankers, including this guy apparently, (going to check my link to the Third Way board) and no, they do not care about the working class. And yes, they are responsible for the rightward drift of the Dem Party.

[PowerToThePeople]

2. but I am sure he is still rich.

Just "lower class" people eating loses. Again.

[DURHAM D]

4. Don't see him mentioned here -

http://en.wikipedia.org/wiki/Third_Way_%28think_tank%29#Board_of_Trustees

But there are some interesting people like William Daley (Obama's Cheif of Staff) and Cong. Gabby Giffords.

[brentspeak]

9. He's on Third Way's website

http://thirdway.org/about/board/derek-kaufman

[Zorra]

5. Third Way, like the GOP, is total fail for the people of the planet. nt

[gratuitous]

6. Kaufman stepped down?

Dang, I was going to post "I smell bonus!"

[daredtowork]

8. Bernanke to Join Citadel

In related news...

http://www.nytimes.com/2015/04/16/business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html?_r=0

[Initech]

11. So it's perfectly OK to lose $1 billion of investor money in bad hedge funds.

But the working poor can't spend a dime on cruise ships or in casinos. What the serious fuck!

[jberryhill]

12. .75 percent gain

Do you meant to tell me that investments have risk?