Major Metals Hedge Fund Down By Half

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%.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...