Thursday, 23 October 2014
Last updated 1 hour 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."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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