Wolver Hill: Hedge Funds Bounce Back After Japan Quake

Mar 28 2011 | 1:24am ET

Despite reports of big losses in the wake of the Japanese earthquake and tsunami, hedge funds appear to have battled back against the worst of the month's losses.

Some hedge funds suffered double-digit losses in the market volatility that followed the Japanese tragedy on March 11, which triggered a nuclear crisis. But global equity markets have rebounded since then, and even Japanese stocks have bounced back somewhat.

"As the market continues to stabilize it seems we have a good chance to salvage what once looked like a disaster of a month," Wolver Hill Asset Management's Ed Rogers wrote to investors last Friday in a letter obtained by Dow Jones Newswires. Wolver Hill invests in Japan-focused hedge funds.

"We have been communicating with all of our managers constantly since last week," he continued. "Almost every one of them has improved on their performance for the month since the very difficult trading sessions of Monday and Tuesday, when the Japanese indices were plummeting on the back of the worsening situation at the nuclear reactor."

Rogers added optimistically, "we have almost two more weeks to improve on our returns for the month."

Wolver Hill's Japan Offshore fund was down 5.6% through March 18.

New York-based Wolver Hill wasn't the only hedge fund hit by the Japanese disaster. Cerberus Capital Management, Odey Asset Management, Paulson & Co., Sparx Group and Tudor Investment Corp. also took losses in the wake of the earthquake.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    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…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.