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The Wall Street Journal reports that the hedge fund industry, like politics, is “a mulligan industry”:

Just over a week ago, Drake Asset Management announced that it was closing its $2.5 billion hedge fund after heavy losses. Executives say they already have more than $800 million committed to a new fund.

Some investors in Daniel Zwirn’s D.B. Zwirn & Co. fund recently received subpoenas from the Securities and Exchange Commission regarding an investigation into the fund, which is closing. But some already have told Mr. Zwirn that they would be interested in giving him money for a new firm he is considering.

Meanwhile, trader Philippe Jabre, who received a record fine for market abuse from the United Kingdom’s market regulator, launched his own fund last year after raising $3.5 billion. And John Meriwether, who oversaw the collapse of Long-Term Capital Management a decade ago, is dealing with fresh losses at his latest hedge fund.

I guess these guys must be raising money exclusively in Tennessee and Texas.

Rebounds by Hedge-Fund Stars Prove ‘It’s a Mulligan Industry’
Gregory Zuckerman and Craig Karmin
The Wall Street Journal

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