Mega Trouble at Vega Asset Managementposted by MR WAVETHEORY at 10/17/2006 04:29:00 AM
|Data in this table based on: September 2006 performance.|
|NAV||Monthly RoR||Quarterly RoR||YTD RoR||1 Year RoR||3 Year RoR||5 Year RoR||Since Inception|
"If you join Vega and dine with me you will enjoy a lot of fine wines, I have a hell of a cellar," Mr. Mehra says.
This summer Mr. Mehra's bet against bonds became a problem, in part because the attributes of the firm that attracted investors began to undercut Vega's performance. He and his team figured that the U.S. economy would continue to expand and that inflation could be a problem, putting pressure on bond prices. But bonds rallied sharply in September. Vega's risk techniques forced the firm to exit from many of its losing positions last month -- just before the bond market headed south, a move that would have been profitable for Mr. Mehra had he held on to his investments.