Obscure Hedge Fund Manager

The numbers that have been seen coming out of a hedge fund all the way down in the Atlanta area are quite surprising given the recent performance of the hedge fund industry.

Annual returns of 13%, 24% and 91% since 2013

The fund is called Arjun LP and the man behind it is Joseph A. Meyer Jr. Meyer contributes his success to a computerized system that he designed on his own aside from investing his clients money in treasury bonds. Meyer is very confident that his fund is doing so well that it is offering almost a guarantee.

Here's the catch, the price of admission is steep as Meyer keeps half the principal if clients leave early in the decade they hand their cash over. Also, you don't really know what he's doing with your money.

How extreme are these given the industry as a whole?

The fund is under the parent company Statim Holdings Inc. and it has been discovered by the Georgia secretary of state that the securities division has discovered multiple irregularities with Meyer and the fund.

Arjun might never have gained much attention at all except for one thing: The numbers Meyer has been reporting have placed him, quite improbably, near the top of the hedge-fund game.

Bloomberg had also reported on his performance as well,

Meyer’s numbers certainly are enticing. Relying on data reported to Bloomberg LP, Bloomberg News ranked Arjun eighth in 2015 among hedge funds with between $250 million and $1 billion in assets. BarclayHedge, which also tracks hedge funds, has bestowed no fewer than 17 awards on Arjun, according to Meyer’s website. Arjun was named one of five top global macro funds of 2015 in HedgePo’s Investors Choice Awards

Meyer says his secret sauce is the proprietary program running on his computer that automatically sends orders to Arjun's prime broker. He tweaks his program every 16 months or so which keeps him constantly innovating. “All it does is look at the last trade and calculate trades that would be equivalent of, ‘What if this security increases 50 percent in value in the next three seconds,”’ Meyer says of his program.

For a fund manager doing so well with the capital that has been invested into it, the clients have so little communication as to what is being done with their money. He doesn't even send audited financial statements to clients either. Therefore, they basically just have to take his word for it.

How often should fund managers interact with their clients? It seems like answers always vary, but to me, if the annual returns are superb (like here) why would I even need to reach out?

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