CQS Fee Income Drops In '11; Funds Rise In '12

Jul 18 2012 | 10:17am ET

CQS's fee earnings fell by more than a third last year, as most of its hedge funds suffered losses.

The London-based hedge fund took in US$111 million in fee income in 2011, compared to US$174.8 million in 2010, according to an accounts filing. That's a 36.5% decline.

The drop isn't a surprise: CQS' largest funds lost ground last year, with its Diversified Fund, which invests in other CQS strategies, dropping 3.4%. The firm's Directional Opportunities Fund took it even harder, dropping 10.4%.

This year, things are looking brighter for CQS. All seven of its hedge funds are up on the year, ValueWalk reports.

Diversified returned 5.7% in the first half (0.9% in June) and Directional Opportunities 17% (3.9% in June). And CQS's flagship ABS Fund is up 5.5% on the year, despite a 0.7% decline in June. Its Convertible and Quantitative Strategies Fund is up 5.7% in the first six months of the year after a 1.1% surge in June.

The firm's year-old European distressed fund is up 1.8% in 2012 and its Asia fund 1.7% (0.5% in June). Its long/short credit fund is up slightly.

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