Monday, 6 July 2015
Last updated 6 hours ago
Sep 9 2013 | 12:51pm ET
Hedge fund Comac Capital has slashed one-third of its staff after its assets under management fell by more than half.
The London-based firm has suffered two straight years of losses and seen its assets fall from US$4.8 billion to US$2.2 billion over the last year. In response, Comac laid off 18 employees last month, The Wall Street Journal reports, the result of a "strategic decision" to shrink the firm back to a size that had proven successful.
"I don't think our performance is where I expect it to be, and it's not where I expect it to be in the future," Comac founder Colm O'Shea said.
Comac lost 9% last year and is down almost 5% this year.
Despite the losses and layoffs, Comac isn't changing its strategy, O'Shea told the Journal. He said that the firm believed its money-losing fixed-income bets would turn around.
"Volatility is rising, markets are moving and, very importantly, correlations have fallen," he said. "Equities, fixed-income and the U.S. dollar are acting very, very differently. This is something I see as being very good for the macro opportunity set."
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…