N.J. Hedge Fund Up 132% In ‘09

Jan 4 2010 | 1:26pm ET

A little-known New Jersey hedge fund is taking a victory lap in the pages of the New York Post.

Barnegat Fund Management, which is based in Hoboken despite being named for the Jersey shore town, returned 132% this year, pushing its assets up to $450 million. And that has founder Bob Treue in the mood to talk some trash.

“Hedge fund incentives are very messed up,” he told the tabloid, pointing to Barnegat’s lower-than-average 1% management fee and 15% performance fee. “We’re the second-largest investor in our fund. What we care about is our own investments in the fund.”

Treue credits the fixed-income arbitrage firm’s policy of keeping half its assets in cash for its strong performance. “Other guys were in similar trades but they didn’t have the backup and were levered more than we were,” he said.

That didn’t stop Barnegat from having an awful 2008, when the fund lost about twice as much as the average hedge fund, 37%. But after this year’s triple-digit return, all is likely forgiven, especially if Treue is right about 2010 being a good year for fixed-income arb.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of