Star Manager Hasenstab's Fund Loses $3 Billion in Rocky Quarter

The video discusses the performance of a fund managed by Michael Hasenstab, highlighting a $3 billion loss in the third quarter and a drop in net assets to $30 billion. Despite a strong long-term reputation, the fund underperformed 80% of its peers this year, losing 1% compared to a 7% gain in the Treasury index. Key investment strategies, including local currency Argentinian debt and short Treasurys, faced challenges. The video concludes with a reflection on Hasenstab's reputation as a skilled long-term investor, despite recent difficulties.

What was the net asset value of the fund after the third quarter loss?

• $40 billion

• $50 billion

• $30 billion

• $20 billion

How did the fund's performance compare to the basic Treasury index?

• It matched the index

• It underperformed by 8%

• It outperformed by 6%

• It underperformed by 6%

What was a major factor in the decline of Argentinian debt value?

• Economic and political issues in Argentina

• Increase in global interest rates

• High inflation in Europe

• Strong performance of the US dollar

What was the maturity year of the Argentinian bond that fell in value?

• 2025

• 2024

• 2023

• 2022

What was the outcome of Hasenstab's short Treasury strategy?

• It was highly profitable

• It had no impact

• It was highly painful

• It slightly underperformed