Monday, 28 July 2014
Last updated 2 days ago
Sep 9 2013 | 12:52pm ET
Perella Weinberg Partners has abandoned a healthcare hedge fund it acquired three-and-a-half years ago.
The New York-based firm is liquidating its $180 million Tōkum fund in response to years of subpar returns, CNBC reports. Tōkum, which managed $250 million in the middle of last year, has underperformed the Standard & Poor's 500 Healthcare Index every year since Perella Weinberg added it save the first.
The fund, which had just $25 million in assets under Perella Weinberg in 2010 poured in a further $75 million, returned 3.1% in 2010, 9.01% in 2011, 2.51% last year and was down 2.24% in the first half of this year, six months that saw the S&P Healthcare benchmark soar 19.06%.
In July, Tōkum manager Emile Westergaard told investors, "in this rising tide, our short portfolio has been an exercise in pain. In particular, our value bias on the short portfolio has been ineffective without direct catalysts in a market that has revalued the entire sector."
Westergaard's plans are unclear.
Perella Weinberg, which has more than $10 billion in assets under management, made the decision to shutter Tōkum last month. The firm will also liquidate the UCITS-complaint version of the fund it launched in 2011 with Morgan Stanley.
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…