Monday, 4 May 2015
Last updated 26 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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…