Thursday, 24 July 2014
Last updated 12 hours ago
Jul 29 2013 | 12:45pm ET
Metacapital Management's unprecedented losing streak continued last month.
The New York-based hedge fund, one of the best performers in recent years, lost ground for its fourth-straight month in June. The $1.29 billion fund fell 2.85% on the month, Reuters reports.
Metacapital, led by Deepak Narula, lost 10.4% in the second quarter, most of it in May, when it dropped 7.26%—its worst month since its debut in 2008.
Metacapital is down 8.24% through the first half.
"We miscalculated the market's response to the possible timing of the Fed's tapering of purchases," Narula wrote. "We weren't terribly surprised by the Fed's statements, but the market response was much more violent than we had anticipated, with spreads widening by approximately 25 basis points over the quarter."
Metacapital's flagship fund, which managed $1.5 billion at the beginning of the year, posted double-digit gains in both 2011 and 2012. The firm manages in excess of $10 billion total.
And the news is not all bad for Metacapital. The firm launched a new hedge fund, the Rising Rates Fund, in May. The vehicle, which seeks to profit from rising interest rates, is already up 7% after just two months of trading.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…