Thursday, 11 February 2016
Last updated 6 hours ago
Sep 18 2007 | 11:56am ET
The last two months have brought bad news for Mulvaney Capital Management. The firm’s Global Diversified program, a long-term systematic trend following program, lost 19.4% last month after dropping 16.89% in July, bringing its year-to-date decline to 34.41%.
Global Diversified, which invests in the major financial and commodity futures markets worldwide, last month bet long and wrong in stock indices, currencies and metals, according to Mulvaney’s latest investor letter. It also lost money shorting interest rates.
The program, which boated assets of $201 million at the end of June to public databases, ended August with just over half of that amount at $125 million.
“We sustained heavy losses in the financial sector as the 'flight from risk' gathered momentum,” the firm said. “By nature our long term strategy can usually be expected to drawdown at major turning points - the question now is whether a significantly higher volatility environment will offer a range of opportunity comparable to previous market crises.”