QIM's Winning Streak Ends On Post-Earthquake Volatility

Apr 8 2011 | 12:21pm ET

Last month's earthquake and tsunami in Japan stopped one hedge fund's hot streak cold.

Quantitative Investment Management, whose flagship Global Program had followed up its big 2010—it returned more than 15%—with two straight up months this year stumbled in March. The $5.2 billion commodity trading adviser fell 0.4%, cuttings its first-quarter return to 1.1%.

"The earthquake which rocked northern Japan on Friday, March 11, sent tremors through world financial markets," Charlottesville, Va.-based QIM wrote to investors. "The aftereffects of this catastrophe included the distinct possibility of a meltdown at the Fukushima Daiichi nuclear plant."

QIM said it had been long both Japanese equities and oil in the week leading up to the tragedy, and suffered in the two-day "plunge" that "was the worst in Japanese stocks since 1987." But the fund managed to bounce back, erasing most of its losses as Japanese stocks rebounded.

"It is with a  heavy heart that QIM publishes this market commentary," the letter read. "The firm is fortunate to have many Japanese investors and our thoughts are with them as they recover from this tragedy."

QIM's two funds based on Global, 1x and 3x, were also down, 0.41% (up 1.17% YTD) and 1.25% (up 3.54% YTD). But its stock fund, Tactical Aggressive, bounced back from a down February to rise an estimated 3.21%; the $466 million fund is up 7.87% on the year.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.