Saturday, 20 September 2014
Last updated 13 hours ago
Oct 2 2007 | 6:00am ET
Credit-focused hedge funds are not the only ones feeling the heat in the current market environment: New York-based Cooper Hill Partners, a $300 million healthcare hedge fund shop, has decided to close its doors.
Since inception more than 10 years ago, the firm’s funds have trounced the Nasdaq Biotech Index and the Russell 1000 Healthcare Index, with annualized returns of 26.1% through August. But 2007 has not been kind: Through Sept. 11, the firm’s CLSP, CLSP II and CLSP Overseas funds are down 10.9%, 10.8%, and 10.3% respectively year-to-date. All three funds are estimated to be down 1.5% in September.
“Our poor performance this year generated significant withdrawals, with redemptions of roughly 15% of assets in the September quarter-end, constraining our ability to fund and execute on our fundamental investment ideas,” said Alexander Casdin, portfolio manager, in a letter to investors. “The decline in our assets has caused a significant strain on our infrastructure that was built for a much higher asset base. The volatility caused by our down performance combined with our heightened awareness of the funds’ quarterly liquidity detracted from our goal of finding and maintaining significant positions in winning multi-year ideas.”
“In short, we were faced with a situation where we could not guide for the long term while looking in the rearview mirror,” he added. “I strongly believe that it would not be fair to maintain the funds if we cannot execute our strategy to generate optimum performance.”
Going forward, Casdin said the outlook for healthcare is bright and that there are big fundamental opportunities and significant value and will continue investing his personal money in the sector.
A source close to the firm said investors have already received 95% of their capital back with the remaining balance to be redeemed by year-end.
Casdin’s father, Jeff Casdin, founded the firm in 1997 with $12 million in assets under management.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.