Thursday, 28 August 2014
Last updated 14 hours ago
Dec 12 2007 | 12:51pm ET
After sailing through most of the year returning over 45% to investors, Baring Asset Management’s China Absolute Return Fund hit a snag last month.The $67.7 million long/short equity fund dropped 11.34% in November, its biggest decline this year, bringing its YTD returns to 38.45%.
In their monthly investor letter, Portfolio managers Khiem Do and Adrian Au attributed the fund’s “unprecedented” decline to external factors such as the U.S. subprime mess; investment banks close to fiscal year end; comments from Premier Wen Jiabao that the pilot scheme for qualified domestic institutional investors of retail investors to invest overseas was not ready; and unfavorable stock selection in the fund.
“The market declined the most in the first week of November by around 10%,” they wrote. “Unlike the month of August, when we saw a meaningful subsequent recovery, the markets remained volatile for most of the month. This made it difficult to recoup the loss via trading tactics to capture either the upside or downside. The sharp sell down on high alpha holdings within our portfolio also caught us by surprise, despite their solid fundamentals as some investors were exiting the market at any cost.”
As a result, the pairs said they lowered the net long position for the fund from 80% to below 30%, while still maintaining the gross exposure at around 120%.
Baring’s China Fund began trading in July 2004 and returned 55.6% last year.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...