Clarium Hedge Fund Down 18% in October

Peter Thiel's hedge fund, Clarium Capital Management LLC, fell 18% in October, its biggest monthly decline, because of losses on bonds. This gives Clarium a loss of 3% YTD, which wipes away the 58% Clarium gained in the first half of the year.

Although, this October was bad for Clarium, the hedge fund industry is experiencing its worst year in 20 years as the average fund lost on average 9.26% last month and declined 19.7% this year.

Clarium had 81% of its money in positions used by investors when they expect a widening spread, or gap, between bond yields, such as for 10-year Treasury notes and 30-year bonds. Instead, yield spreads narrowed in October.

Clarium borrowed $4.40 for every $1 in equity capital invested as of October 31st, compared with $3.90 for every $1 a week earlier.

Thiel manages $5.2 billion and trades everything from stocks to commodities, seeking to profit from broad economic trends. Thiel was one of the co-founders of Paypal that he later sold to ebay.

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