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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…