Jason Karp’s Tourbillon Capital: FAANGs Are Not Investments; Bubbles Everywhere

Jason Karp’s Tourbillon Capital Partners has gotten off to a rocky start to the year with the Tourbillon Global Master Fund returning -1.1% net during the first quarter. The Long Alpha funds (domestic and offshore) had a +5.2% and +5.5% net return respectively and while this return beat that of the Master Fund, the Long Alpha funds underperformed their SPX/MSCI World blend benchmark return of 6.2%.

Karp tries to explain why Tourbillon underperformed within the pages of his first-quarter letter to investors, a copy of which has been reviewed by ValueWalk. The funds have adopted a conservative positioning considering the wider market environment and averaged 17% hedged during the quarter. Karp and team have also tried to stay away...