Wednesday, 25 May 2016
Last updated 3 hours ago
Dec 13 2007 | 9:33am ET
With just a month to go, RK Capital Management’s disastrous 2007 got a lot worse. The hedge fund’s flagship Red Kite Metals fund, fell 22% in November, and is down 50% year-to-date.
Red Kite was reportedly hit by plummeting copper prices, which fell more than 9% last month.
November was the third month of double-digit declines this year, Bloomberg News reports. In January, the fund fell about 30%, and in August, it lost another 20%. After January’s disaster, RK Capital won approval from investors allowing it to require 45 days notice for withdrawals.
At the time, RK said withdrawal requests were “insignificant” and that it had received “strong support and encouragement” from its client base. Of course, in February, those investors may still have remembered the fund’s 2006 performance, when it gained 188%.