Wessex To Close Hedge Funds

Nov 16 2011 | 11:45am 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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.