A popular hedge fund sent a letter explaining why it lost money last year

A popular hedge fund founded by Steve Cohen, sent a letter to investors explaining all the reasons for its underperformance.

Letter from January, written by Folger Hill's Sol Kumin, explain why hedge fund has dropped by 17.5% for the last year, while the S & P500 marked 12% growth. One of the main reasons cited are difficult environment for selecting shares, crowding of hedge funds and the US elections.

Folger Hill faced concerns about redemptions to investors last year. Meanwhile, two of his portfolio managers recently left in the competition. Only one remained until last week, reports Business Insider.
Kumin wrote that company was also wrong in his choice of sectors in which to invest, focusing on sectors such as health, consumer goods, technology, media and telecommunications, rather than those with greater momentum as energy, finance and industry.

However, the company expects turnaround this year. According Kumin, this year there will be many opportunities for the elections led to a turning point in the history of the global economy. Especially short positions in shares.

Kumin, former COO of SAC Capital, launched Folger Hill in 2014. The company lost about one-third of its assets last year. The company managed about one billion dollars, but by the middle of 2016 dropped to about $ 600 million in just three months.

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