Wednesday, 22 October 2014
Last updated 17 hours ago
Jan 31 2011 | 1:41am ET
The demise of one small hedge fund roiled the gold market on Friday.
SHK Asset Management founder Daniel Shak decided to pull the plug on his fund and its sole investment: spread trades on Comex gold futures. While the firm managed just $10 million before gold's recent decline, SHK held $850 million worth of gold contracts. Dumping them last week led to the largest single drop in the number of contracts on the Comex ever.
"Yeah, that was just me liquidating my spread position," Shak told The Wall Street Journal. "I had a significant, fully-margined position. The dollar amount of the gold liquidation was very small, it was just a lot of contracts."
According to the Journal, gold's troubles over the last several weeks led to a 70% loss for SHK. But Shak said the big drop wasn't the reason he's closing his fund.
"I just chose to close," he said. "I didn't like my positions so I chose to close; I wasn't forced. I was in the process of closing anyway."
Still, Shak admitted, "down 70% is better than down 100%," and noted that Comex's continuing increases in his margin requirements were a factor. Last Monday, Comex raised his margin requirements by 25%.
Shak also denied that his decision last week to list his Manhattan apartment had anything to do with his losses. And he said he would begin trading again in a few weeks, although he did not say that he would begin managing outside money once again.
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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