Saturday, 23 August 2014
Last updated 1 day 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."
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note