Monday, 20 October 2014
Last updated 2 days ago
Feb 7 2013 | 11:15am ET
Commodity hedge funds shrank by at least one-fifth last year, battered by poor performance and investors fleeing those bad returns.
The average commodity hedge fund lost about 3.7% last year, according to the Newedge index. In addition, the sector suffered its largest redemptions since the early 2000s, the Financial Times reports, with withdrawals nearing a net $5 billion.
All told, it left the commodity hedge fund world 20% smaller than it was at the beginning of last year, with a number of prominent funds, including BlueGold Capital Management, Centaurus Capital and Fortress Investment Group's commodities fund, shutting up shop altogether.
The news was not all bad, as some new and smaller hedge funds took in cash last year.
"What we are seeing is a significant reallocation of capital within the commodities space," Osvaldo Canavosio, head of commodities research at the Man Group's FRM fund of hedge funds business, told the FT. That has led to "some meaningful reductions in some funds and some significant increases in others," he said.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
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 ...