Hurricane-Ravaged Hedge Funds To Close

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.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note