There is a saying around trading desks: bull markets make geniuses out of the biggest idiots, and when it comes one of the world's most famous "traders", we just saw that in saying in action.
Two months after we reported that Templeton's "investing wudnerkind" Michael Hasenstab, who for nearly a decade during the most artificial bull market in history had a knack of investing in the crappiest bonds around the globe and betting they would get bailed out by one or more central banks - which is precisely what happened.. until this summer, lost over $1 billion as a result of the spectacular implosion in Argentina bonds, Bloomberg today writes that the flagship Global Bond Fund of the $720 billion mutual fund Franklin Templeton, lost $3 billion in the third quarter as two of its biggest investments soured.
Total net assets in the fund managed by star investor Michael Hasenstab dropped from $33 billion to $30 billion in the three months through September, an analysis of public filings showed.
As we reported previously, Hasenstab was heavily invested in Argentinian local-currency bonds which defaulted in August. Adding insult to injury, the fund also held a huge short position on U.S. Treasuries as yields dropped to a three-year low.
http://www.zerohedge.com/markets/templetons-hasenstab-lost-3-billion-q3?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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