Reuters/Desmond Boylan
Simone Foxman and Margaret Newkirk over at Bloomberg published a great story this morning on Arjun LP, a fund run by Joseph A. Meyer.
The fund has posted annual returns of 13%, 24% and 91% since 2013, according to the story. Meyer, the founder, has guaranteed investors they'll never lose money.
The catch: investors have to hand over their money for ten years and they get little information about the strategy. Meyer only says that he employs a computerized system and invests most of his clients' money in Treasury bonds.
Finance Twitter can't stop talking about the story. Here is a sampling.
I can't even believe this story from @SimoneFoxman https://t.co/4fnWTW0jvl
How does this hedge-fund manager make so much money? https://t.co/Jhsdzn6bNO (this is really something)
- Charley Grant (@CGrantWSJ) July 26, 2016
Hedge fund manager explains the secret to his dubious success: spreadsheet calcs as code(!) https://t.co/oBUmCexT6G pic.twitter.com/130GE1knV2
- Brian Timoney (@briantimoney) July 26, 2016
Cool story from @SimoneFoxman - throwing a challenge flag on this Atlanta-based hedge fund with eye-watering returns https://t.co/lLiK8uDbY6
- Antoine Gara (@AntoineGara) July 26, 2016.@SimoneFoxman discovered some peculiar things about this hedge fund ... Pretty pretty pretty peculiar https://t.co/yTPKpzR9s0
Trust the program, says hedge fund that *guarantees* no losses. https://t.co/66KGvdsKfX
- Romy Varghese (@romyvarghese) July 26, 2016There's enough questions that Georgia securities regulator is looking into the matter, Bloomberg reports. Meyer's lawyer responded that this is just over a misunderstanding.