Lahde Capital Up an Eye-Popping 1000% in 2007

Lahde Capital, a hedge fund run out of Santa Monica California by Andrew Lahde, has returned an absolutely ridiculous 1000%+ so far in 2007.

Lahde started the fund with about $10 million dollars in capital a few years ago after spending some time with Dalton Investments LLC. All told, Lahde Capital ended up making about $87 million dollars for Lahde and his investors in 2007.

Lahde Capital made the money by shorting US subprime home loans, which Andrew Lahde correctly predicted was a ticking time bomb. You have to wonder what kind of leverage Lahde was using to generate returns of this magnitude - 20/1, 30/1, maybe more? It was a ballsy trade that could have resulted in a big loss, but as they say, fortune favors the bold.

Lahde says that he is putting most of the profits into gold and other precious metals, and also said that he expects there will be a collapse in the value of bonds backed by commercial property loans. Lahde is using his newfound riches to launch two new funds - one that will bet against commercial real estate, and one that will short credits with a broader mandate.

Filed under: Hedge Fund News | Trader Profiles

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COMMENTS

Comment by Dave on October 23, 2008 @ 2:32 am

Hey M

Absolutely, please be my guest.

Dave

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Comment by M on October 22, 2008 @ 9:09 pm

Ah, I wasn't sure that my message would be moderated, or I would have added my compliments, and further explanation that we don't have any money, unfortunately. We are activists who try to alert people to the methods of the pharmaceutical industry. If permitted, we will display the picture with an image link, so that you can break the link any time you choose. Thanks.

BTW, the contact button on you site doesn't work.

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Comment by M on October 22, 2008 @ 9:02 pm

Requesting permission to use your drawing above to embellish a post about Andrew Lahde. Your site will be credited and linked (if you wish). We are a non-profit organization existing wholly from volunteers (see www.metzelf.info).

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Comment by Stock Trader on October 18, 2008 @ 10:09 am

He bought credit default swaps. There was no risk of a big loss. They are like puts. He could only lose what he paid for them.

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