Friday, 19 September 2014
Last updated 1 hour ago
Feb 21 2013 | 2:17pm ET
Redemptions have motivated HSBC to shutter an India-focused hedge fund run by Sanjiv Duggal.
The India Alpha fund, launched in 2007, peaked asset-wise in 2008 at over $300 million. It was down to $85 million by December, reports Reuters.
And yet, the fund gained 26% in performance terms last year, compared to an average 10.3% gain for emerging markets hedge funds (and much lower gains by the hedge fund industry generally). Since inception—and despite down years like 2008, when it lost 26%—it is up 39%.
An HSBC spokesman told the news agency that Duggal and his team remain with the firm where they run Indian equity assets of $6 billion, including the flagship $3.8 billion HSBC GIF Indian Equity fund.
According to HSBC, the decision to close the fund was based on an analysis of assets under management, profitability, sales interest, commitment and scalability.
"The HSBC India Alpha fund was reviewed in light of this to determine the extent to which the fund is aligned with the broader business strategy and it was concluded we would close the fund as it did not meet our criteria going forward,” the spokesman told Reuters.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.