Aspect Profits Fall Off A Cliff

Oct 4 2010 | 2:41am ET

Last year was not a fun time at Aspect Capital.

The hedge fund's quantitative flagship, Diversified Program, dropped 11.24% on the year. Assets under management dipped 17.4%. The former led to a 75% drop in performance fee income, the latter to a drop in management fees.

It all added up to a dismal 98% decrease in profits on the year at the London-based firm, according to regulatory filings.

"The sudden reversal of such well-established trends is typically the cause of short-term performance give-backs for our momentum-based strategy and the severity of these trend reversals mean that the second quarter of 2009 was particularly difficult for programs, such as Aspect Diversified, that are primarily driven by medium-term trend capture," the firm explained.

On the bright side, things appear to have turned around to some extent at Aspect. The firm, whose assets sank to US$3.57 billion last year, now manages about US$4 billion.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of