Remember Clarium Capital, the $7 billion hedge fund run by former PayPal CEO Peter Thiel? Oops: Make that the $5.2 billion hedge fund run by Thiel . The fund was down 18 percent in October alone. August was also a disastrous month, as Thiel's bets on the economy went sour. After running up 58 percent from January to June, it's now down 3 percent for the year. Thiel is also an investor in Facebook, but that doesn't seem like much of a hedge right now.