Wednesday, 1 October 2014
Last updated 6 hours ago
Nov 5 2010 | 12:03pm ET
While most hedge funds have been riding the equity-market rally this year to returns not seen since the financial crisis, that rally has cost one hedge fund firm its life.
Timescape Global Capital Management has liquidated its portfolio and will close its doors. The firm, founded four years ago by a pair of SAC Capital Advisors veterans, went short in September while the market went long. Timescape told investors that it liquidated what’s left of its portfolio last month, The New York Times reports.
“You may recall that we were up 6% going into September,” co-founders Peter Corey and Nadir Khan wrote. “But we put on a short position that cost us dearly in the face of an unprecedented September rally,” the markets’ best September since the Great Depression.
“The portfolio was liquidated during the first three days of October and we have been in cash ever since.”
Timescape, which was based in New York and Las Vegas, said it will return the money as quickly as possible to investors. The firm has just $50 million left, down from $298 million at its peak in mid-2008.
The firm has suffered ever since Khan moved to New York from Pakistan after investors demanded a presence in the city. But Timescape’s business model depended on training relatively inexpensive analysts based in Karachi, and without Khan’s presence in that city, the firm’s performance suffered, according to the Times.
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…
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