Thursday, 28 August 2014
Last updated 6 hours ago
Apr 8 2011 | 3:53am ET
Add R.G. Niederhoffer Capital Management to the list of hedge funds hit hard by last month's massive earthquake and tsunami in Japan.
The firm's $368 million Diversified Program lost 9.8% in March, despite getting off to a strong start last month. But the March 11 disaster, which triggered the ongoing nuclear crisis at northern Japan's Fukushima power plant, changed everything, MarketWatch reports.
"We have had periods like this before in which exogenous negative or positive events have caught our strategy positioned incorrectly both during the event and afterwards," firm founder Roy Niederhoffer explained. "March was particularly disappointed, given our strong start to the month. Unfortunately, the vents at the Fukushima reactor in the two days following the tsunami and the subsequent three-week 'risk-on' rally that followed caused many parts of our strategy to incur significant losses."
The flagship's March losses come on top of a more modest 1.4% decline in February. As for last month, Niederhoffer says, it could have been worse.
"Luckily for investors, the [Standard & Poor's 500 Index] was dutifully resilient and rebounded strongly right off the March 16 low," he wrote in the Tuesday letter to investors. "However, a more sustained correction would have caused enormous losses for hedge fund investors."
"As one of the largest investors in our programs, I remain very confident in our strategy and our prospects," he added.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...