Wednesday, 24 August 2016
Last updated 13 min ago
Sep 6 2007 | 7:45am ET
Hurricane Katrina ravaged commodity hedge funds run by Global Advisors, and it’s been all downhill from there. This week, almost exactly two years after that storm struck the U.S. Gulf Coast and devastated New Orleans, the U.K.-based hedge fund manager plans to put a pair of funds out of their misery.
The Global Advisors Commodity Investment and Global Commodity Index Plus funds, buffeted by losses and investor redemptions in a run of bad luck that began with Katrina’s landfall, are to close by the end of the month, Financial News reports.
The closures and earlier redemptions will leave Global Advisors with just $100 million in assets under management, from a peak of $400 million before the hurricane. It’s also cutting its staff by 40%, a loss of four jobs.
But not all is doom and gloom for Global during this hurricane season: Its discretionary programs have been a disaster, but its systematic program has been a success. Co-principal Rus Newton told Financial News that the firm will concentrate on the quantitative systematic program going forward.