Red Kite Investors Plan No Flights After Brutal Jan.

Feb 16 2007 | 12:52pm ET

Hedge fund managers take note: If you plan on losing 30% in a month, it helps to have tripled your clients’ money in the previous calendar year.

Metals-trading hedge fund Red Kite plummeted by about a third last month, battered by dropping copper prices. But the fund, which extended to 45 days the notice required to redeem investments in the wake of the loss, said in a statement today it hasn’t seen an avalanche of redemption requests.

“Our investor base, including all of our major investors, has given us strong support and encouragement for the future,” London- and New York-based RK Capital Management, which runs Red Kite, said. Investors had until yesterday to request withdrawals on March 31, and RK characterized the number of such requests as “insignificant.”

The bad news about January came after Red Kite posted a year of the ages in 2006, returning 188%.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...