Billionaire Michael Hintze Suffered a Record 45% Loss in His Flagship Fund

Gene Naumovsky

The corona-virus pandemic and Hintze's strategies led to an enormous loss.

Hintze-managed CQS Directional Opportunities Fund lost around 33 percent of its value in March, as well as an extra 17 percent in April (per Bloomberg’s report) leading to billionaire trader Sir Micael Hintze’s 45 percent loss in his flagship fund, according to Markets Insider. As Hintze’s fund tanked, hedge funds’ averaged a loss of 4.6 percent over the two months. The fund had a successful past, as its returns proved triple the industry standard over the last 15 years.

The coronavirus pandemic hurt CQS, and Hintze’s tactics- distressed, asset-backed, equities, and volatility strategies- only led to further losses. April’s negative oil price drops also contributed to CQS’s injuries, as the Financial Times reported the fund’s energy losses. CQS’s assets lost $3 billion in value as the fund sold assets to pay creditors for collateral requirements.

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