Wessex To Close Hedge Funds

Nov 16 2011 | 12:45pm ET

Wessex Asset Management will close its three hedge funds after their assets dwindled from more than US$600 million to about US$20 million.

The London-based firm, which was founded in 1999 by a pair of Abbey Life veterans, has also suffered double-digit losses in all three of the funds this year. Its flagship Asia-Pacific Fund is down 27% this year, and its other two funds have done even worse: Its Natural Resources Fund is down 34% and its Gold Fund 37%, Reuters reports.

"Our funds are now too small to have any realistic prospect of growing back to critical mass, so the directors have no option other than to close the Wessex Asia-Pacific Fund, Wessex Natural Resources Fund and Wessex Gold Fund," the firm told investors yesterday. Asia-Pacific, which once managed US$270 million, now has just US$11 million in assets, while Natural Resources has dropped from US$330 million to US$6 million and Gold from US$50 million to US$3 million.

"We still believe in value investing in Asia, in the commodity super-cycle and the gold bull market, but value investors need longer holding periods than are allowed to small hedge funds in these markets," Wessex complained.

Wessex has eight employees in London and Bournemouth, including founders Peter Chesterfield and Tim Weir.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain Capital: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of