Zadig Manager Moves Fund To New Firm

Sep 19 2012 | 1:58pm ET

The manager of a Zadig Asset Management stock hedge fund will go into business for himself—and is taking his fund with him.

Jonathan Herbert has founded Cologny Advisors in London. The new firm will house Herbert's four-and-a-half-year-old Camox Fund, which has bounced back from a disappointing 2011 with double-digit returns this year.

Camox, which manages €25 million, has a concentrated portfolio of 25 longs and five shorts. The fund is up 29.7% this year—11.7% this month to date alone—and is "very long."

"The cheaper that stocks get, the more interesting, as I invest in companies in good-quality Europe: Germany, Switzerland and Scandinavia," Herbert told Financial News. "They are exposed to the entire world, not peripheral Europe. Their sales to Greece are 0%, sales to Spain at 0% to 2% and sales to Italy are 0% to 5%." And as good as things have been, they're about the get better, he said.

"Now the [European Central Bank] is ready to do what I though they'd do two years ago," Herbert said.

Camox returned 4.7%, 29% and 26% in its first three years before losing 13% last year. "I underperformed because I chronically underestimated the depths of the European crisis," Herbert said. "I believe that the euro is a political rather than economic project and thought that the full force of the European Central Bank would be behind it."

He also blamed bad currency moves for Camox's 2011 wores.

"I'm the only imbecile out there who hedged out currency exposure" as the Swiss franc soared to reach parity with the euro, which Camox is denominated in, Herbert said. "It was a double whammy."

Camox charges 1.5% for management and 20% for performance.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.