Eclectica Profits Plummet As Performance Fees Evaporate

Dec 17 2010 | 12:46am ET

A cautious Eclectica Asset Management missed out on last year's hedge fund rally—so its managers missed out on a big payday.

The London-based firm saw its profit fall almost 80% in the 12 months through March 31, since the firm collected no performance fees in 2009, when its flagship fund fell 8%. Eclectica's partners split just £1.7 million between them, compared to £8.6 million during the prior year.

The Eclectica Fund returned an impressive 32% in 2008, while the average hedge fund lost almost 20%.

Eclectica may miss out on performance fees again this year: The US$230 million fund is up just 5% this year, the Financial Times reports. It had been up 15% through August before taking a hit during the bond-market selloff.

"Our view is that the economic recovery is still very fragile," partner Tim Arengo-Jones told the FT.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…