Thursday, 26 November 2015
Last updated 13 hours ago
Jun 12 2012 | 12:21pm ET
A hedge fund launched specifically to bet on Spain’s troubled banks has failed (so far) to profit from the crisis.
London-based Capula Investment launched the Capula Special Opportunities fund with $500 million but it hasn’t lived up to its hype, returning 1.9% in May and losing 3.8% year to date.
The fund bets on the price of credit default swaps. Spanish bank CDS prices have jumped in recent months, but the fund has yet to capitalize.
Capula pitched the situation as a “one-time opportunity” to a select group of institutional investors including the $50.8 billion Pennsylvania Public School Employees’ Retirement System, says Reuters citing a September board resolution recommending the pension invest up to $250 million in the fund which was targeting net returns of 50% to 70% while limiting the downside to just 10% per year.
Capula was founded in 2005 by Yan Huo, a former electrical engineer with a doctorate from Princeton, and ex-UFJ International's Masao Asai. Goldman Sachs' Petershill vehicle bought almost 20% of Capula in 2008.
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…