Monday, 20 October 2014
Last updated 3 hours ago
Feb 8 2010 | 10:35pm ET
When hedge funds rushed last year to launch distressed debt funds designed to profit from the economic recovery, many expected the opportunities to last for at least a couple of years. But many are closing less than a year after their debut.
BlueMountain Capital Management liquidated its $100 million fund last month. Silverback Asset Management and Highland Capital Management began returning money to investors in their funds last year, as did Declaration Management & Research, Bloomberg News reports.
Chapel Hill, N.C.-based Silverback launched its $210 million convertible-bond fund in March. The $506 million firm began returning money to investors in December. In those 10 short months, the Investcorp Silverback Opportunistic Convertible Fund has gained 121%.
About a third of the money was returned in December, fund manager Elliot Bossen told Bloomberg. The rest will be sent back before July.
“The opportunities in the market aren’t as huge as they were,” Bossen said of the fund, which was set to have a two-year lifespan.
Highland’s fund got an even earlier start, debuting in November 2008. And it enjoyed higher returns as a result, soaring 138% before the Dallas-based firm pulled the plug on the CLO Value Fund I. That fund had been scheduled to last until 2014.
“We were surprised by how fast the market rallied,” portfolio manager Gibran Mahmud told Bloomberg.
McLean, Va.-based Declaration also launched its funds in November 2008, closing them in December. The firm’s DMR Mortgage Opportunity Companion returned 42.3% over the period.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...