Jabre Bought Japanese Shares After Quake, but Bailed Too Soon, Missing Rebound
By GREGORY ZUCKERMAN
Few investors have made as many mistakes navigating markets over the past two weeks as Philippe Jabre.
Mr. Jabre, one of Europe’s best-known hedge-fund managers, bought Japanese stocks on news of the earthquake, and then suffered when the Nikkei Stock Average quickly tumbled 13%. Making matters worse, Mr. Jabre got nervous and sold his shares last week, just before a rebound in Japanese stocks. The miscues cost his firm about $300 million, the worst few days of his career.
But as Mr. Jabre reflects on his decisions, he isn’t sure he made many mistakes.
“I keep thinking about it, what could I have done differently?” said Mr. Jabre, who manages $6 billion hedge fund Jabre Capital Partners SA. “I spent all last weekend asking questions” of friends, colleagues and clients, he said. “We couldn’t take the risk of the Tokyo Stock Exchange closing down, so we sold” Japanese shares.
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