Adelante Abandons Emerging-Markets Debt Strategy

Sep 11 2013 | 12:28pm ET

For 14 years, Adelante Asset Management's long-biased strategy paid major dividends in emerging markets. But no more.

The London-based firm closed its Emerging Debt Fund at the end of July and returned its US$80 million to investors. The fund follows Adelante's emerging markets stock fund, which it shut several months ago, into the dustbin.

"We believe our investment style is not suited to the current and foreseeable environment," CEO Julian Adams told Financial News, citing the recent sell-off in emerging markets debt, fears that the U.S. Federal Reserve is about to cut back on its bond-buying program and currency difficulties, now exacerbated by the crisis in Syria.

"The words 'fixed-income' and 'emerging markets' are not very popular this year," he said. For Adelante's strategy to work, emerging markets debt needs to "come good," he said, something that he could not foresee.

The Adelante Emerging Debt Fund has enjoyed annualized returns of 15.4% since its debut in 1999, but lost about 2% this year.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.