Friday, 29 August 2014
Last updated 5 min 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.
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 ...