Thursday, 28 August 2014
Last updated 11 hours ago
Jul 11 2012 | 1:39pm ET
Passport Capital is pulling the plug on its six-year-old materials fund, which has lost almost one-third of its value this year.
The Passport Materials Fund is down 31% this year after losing 17% in the second quarter, it told investors in a letter this week. Over the past 12 months, the fund is down 45%, cutting its return since inception in March 2006 to just 6.6%.
Passport said it expects to return about 75% of the fund's remaining assets to investors on or about July 15. The other 25% will be liquidated "over the ensuing month," fund managers James Cunningham and Sebastien Boifort wrote.
The letter was obtained by Bloomberg News.
The Materials Fund's portfolio includes 14 private investments accounting for 62% of its assets. Cunningham and Boifort said that "the privates in the portfolio are taking longer than expected to achieve liquidity, making it impractical to expect liquidity from the privates to increase trading capital in the near term."
The fund's three largest private investments are Ferrous Resources, Satimola Ltd. and Canadian Sinosun Energy. Passport marked down its investment in the former by 24% in the second quarter, while a bid to acquire Satimola has recently seen its value reduced.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...