Steve Mandel started Lone Pine Capital in 1997 and has since grown it to one of the largest in the industry, but even the mighty fall. More frequently than not, they fall louder and longer than any others. Now Mandel has joined the ranks of those hedge fund managers with less than impressive performance reports CNBC.
Steve Mandel Says ‘It Was a Rough Quarter’
Lone Pine’s Steve Mandel has not had a good third quarter. “It was a rough quarter” Mandel said. He described the fund’s performance as “quite respectable until the last week of September.” “Stocks globally are currently cheaper, based on consensus earnings estimates, than at any time in our 14-year history.” Mandel “blamed currently higher risk premiums and lower earnings multiples on a lack of political leadership, coupled with high levels of developed world government debt.”
Lone Pine’s Third Quarter Performance
“Lone Pine’s $8.7 billion Lone Cascade family of hedge funds took a beating in the third quarter,” reports CNBC, “with Lone Cascade down 14.3 percent, Lone Cypress down 9.8 percent, Lone Kauri down 8 percent and Lone Dragon Pine down 25.1 percent vs. the S&P 500, which was down 13.9 percent.” It said, “Year-to-date the Lone Cascade fund is down 9.2 percent, Cypress is down 4.2 percent, Kauri down 3.8 percent and Lone Dragon Pine down 25.3 percent versus the S&P 500, which was down 8.7 percent.”