Haidar's Macro Fund Sheds 11.5% in October, Third Double-Digit Drop This Year

What happened

Said Haidar's Jupiter fund slid 11.5% in October as turbulent markets hit his leveraged macro book, delivering a third double-digit monthly loss this year. Even so, this was not close to his worst stretch. Since launching his namesake hedge fund in 1997, there have been 15 months with larger declines, based on an analysis of his track record.

An investor document viewed by Bloomberg News shows the drop pared the fund's year to date gain to 6.3%. As of September's close, assets stood at $702 million, a drop from about $5 billion in 2022 following an extraordinary bout of volatility for Haidar's investors. A representative of Haidar Capital Management did not reply to a request for comment.

Why it matters

Haidar is known for highly leveraged macro wagers that can produce big swings in either direction. The fund returned 193% in 2022, then recorded losses of 43.4% and 32.7% in the two following years, respectively. September showed the flip side of that volatility.

The fund was up nearly 18% that month, and Haidar told clients that fixed income trades were the biggest boost as he benefited from weakness in global bonds. Commodities also added, with profits tied to strength in refined energy products.

Market volatility can test any strategy, and smart tools help steady decisions. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

"It's not clear what drove the losses last month." But he did outline his macro views in September, writing, "With the US likely to step up its attacks on Iran following the US midterm elections, the Houthis continuing to attack Saudi Arabia, and Ukraine's ongoing strikes on Russian energy infrastructure, a further rise in energy prices is probable." He also told clients, "We also view the recent rally in global bonds as unlikely to be sustained, as second round inflationary effects from the resulting energy crisis ultimately force central bankers' hands."

The backdrop and what it means for your portfolio

October dealt a rough hand to many macro funds as multiple shocks hit markets. Violent protests in France deepened a selloff in government bonds, and renewed AI worries plus weak earnings pulled technology stocks lower. Some peers still made money, with funds at Citadel and D.E. Shaw & Co. among the few in the green, Bloomberg News reported.

The bottom line: funds that lean on leverage and trade across rates, commodities and currencies can swing fast. If your portfolio holds similar high volatility strategies, expect returns to track the same bond and energy moves that set the tone in October.

Learning how to use new technology can give investors a thoughtful advantage. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.