N.J. Hedge Fund Up 132% In ‘09

Jan 4 2010 | 12:26pm 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

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

Near Term Consolidation In Bullish U.S. Dollar Trend

May 11 2015 | 11:38am ET

The US Dollar is in a multi-year bull market, according to Conor O’Mara, investment...

 

Editor's Note