Monday, 30 November 2015
Last updated 2 days ago
Oct 4 2011 | 12:44pm ET
As copper prices plummet, one hedge fund is belatedly celebrating its foresight.
The swoon in copper has pushed Red Kite Management's hedge funds up double-digits this year. The London-based commodities hedge fund's RK Metals flagship is up 45.6% this year through last week, while its longer-term RK Prospect fund is up 70%, the Financial Times reports.
Red Kite is the beneficiary of a bearish position it established last year. For most of its life, that investment has burned the firm, which saw the Metals fund lose 25.6% and the Prospect fund almost 40% last year. Indeed, copper's rally continued into February, when it reach an all-time high.
Since then, however, the collapse in copper prices that Red Kite bet on last year has come to pass. Copper is down by more than a third from its February peak.
"It's been quite a ride," a Red Kite investor told the FT. "You've had to have some balls to sit it out over the years."
Red Kite's bet against copper came after it warily eyed the growing stocks of the metal sitting in off-exchange warehouses in the world's largest copper producer, China.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…