Geronimo Folds Hedge Funds

Sep 4 2007 | 11:30am ET

Denver-based Geronimo Financial Asset Management board of trustees last month voted to close the firm’s trio of hedge funds. 

The Geronimo Multi-Strategy, Sector Opportunity and the Option & Income funds are “no longer pursuing their respective investment objectives,” according to the firm’s Web site. “All holdings in the Funds’ portfolio are being liquidated, and the proceeds will be invested in money market instruments or held in cash. Any capital gains will be distributed as soon as practicable to shareholders…”

A call to founder David Prokupek was not returned before press time.

The funds launched in January 2006 and employ equity long/short, option writing and market neutral strategies to beat its benchmark, the Merrill Lynch 90-Day T-Bill Index. Although the firm didn’t give any reasons for shuttering its hedge funds, a quick review of their year-to-date performances may explain their demise. Through August, the Geronimo Multi-Strategy Fund (Class I) is down 9.55%, the Geronimo Sector Opportunity Fund (Class I) (GPSIX) is down 5.28% and the Geronimo Option & Income Fund (Class I) (GPOIX) is down 2.44%.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...