Monday, 20 October 2014
Last updated 2 days ago
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.
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…
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 ...