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

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note