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%.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...