Why Horseman Global got belted

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Via Zero Hedge:

Unfortunately for Horseman investors, in April the fund suffered a 12.23% drop as the market melted up just ahead of Trump’s renewed trade and tech war on Beijing and Huawei. The drop was the second worst month in the hedge fund’s history after it lost 12.73% in September 2011, when the market ripped as many shorts (Clark included) pressed their positions after the US downgrade by S&P. The result is that Horseman’s YTD performance of -25.5% would mark the worst year in the fund’s history if the books were closed today.

So what happens next? Well, as we noted two weeks ago, Clark is convinced that the crash is almost upon us, warning recently that “the stars are aligning, and the markets are complacent,” and urging clients to “get the popcorn ready, it’s showtime.”

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.