Monday, 20 October 2014
Last updated 2 days ago
Oct 11 2011 | 2:49pm ET
Longacre Fund Management is closing its largest hedge funds and preparing for a much smaller future.
The New York-based firm told investors yesterday that it would shutter its main funds in the wake of larger-than-expected redemptions. Clients apparently headed for the door as the firm lost 7% in August, wiping out its year-to-date gains.
Longacre was already in much-reduced circumstances by the beginning of the year, having seen its assets drop from a peak of about $3 billion to just $835 million. Late last year, the firm closed its office in London.
Longacre, a distressed specialist, had been seeking strategic partners to keep it afloat; the firm sold a minority stake to Goldman Sachs' Petershill private equity fund three years ago. It will continue to manage several smaller funds, offering clients the opportunity to transfer their investments in its larger funds to the surviving funds. But Longacre said that it will shrink significantly one way or the other, The Wall Street Journal reports.
Longacre was founded in 1998 by three Bear Stearns distressed debt traders, John Brecker, Vladimir Jelisavcic and Steven Weissman. The firm's flagships have managed positive returns in all but two years since then, and have annualized returns of 9.6% and 9.8%.
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 ...