Australia’s Macquarie Fortress Fund just announced that their Net Asset Value (NAV) just reached 0.  Yes, zero, that’s not a misprint….they lost all their investor’s money, over A$220M in less than 6 weeks.  How did these rocket scientists achieve this historic return on investment? By gambling on US non-investment grade corporate debt (a Euphemism forjunk bonds).  Another smart move was to leverage 6x their original investment.  I’m sure these geniuses bought some Lehman Brothers bonds on top of it all.   If hedge funds had a Darwin award, these guys would win it!

Source: WSJ