Monday, 20 October 2014
Last updated 2 hours ago
Aug 17 2007 | 11:47am ET
No stranger to drawdowns, John W. Henry & Co. last month saw its winning streak snapped at three and chalked up another one on the loss column. The firm’s Financial & Metals portfolio “led” the way, dropping 11.66%, followed by the International Foreign Exchange program, which was down 8.01%.
Not unlike its hedge fund peers, the firm’s programs were victimized by “concerns about strains in the U.S. housing market, exposure to sub-prime mortgages and excess leverage in the financial system resurfaced prompting investors to reduce positions in ‘risky assets,’” according to Kenneth Webster, president and chief operating officer, in his monthly investor letter.
“Trends in global bonds and equities were halted in July when problems in the U.S. housing and sub-prime mortgages spread throughout the global financial markets,” Webster penned. “This contagion led to a broad-based reduction in risk. Diversifications and risk management techniques helped to minimize losses in this difficult environment.”
Webster also optimistically scribed, “It is hard to know where the markets go from here but it is quite possible that elevated levels of volatility will persist in certain markets, which could be a positive development for JWH’s style of trading.”
The firm’s assets under management currently stand at $521 million.
It’s not been a good month or so for JWH founder John Henry: The fortunes of the Boston Red Sox owner’s investments seem strangely correlated with those of his baseball team. For months comfortably ahead of their struggling rivals, the New York Yankees, the Sox have seen their once-double-digit lead over the Bronx Bombers cut to—Holy Cow!—just five-and-a-half games.
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 ...