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

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...