‘Nowhere To Hide’ For Babylon Fund In Nov.

Jan 8 2008 | 1:04pm ET

Godvig Capital’s Iraq-focused hedge fund, the Babylon Fund, experienced its biggest monthly drawdown since inception, losing 5.4% in November. The drawdown slowed the US$13.1 million fund’s year-to-date returns to 13.6%.

In his monthly investor letter, portfolio manager Björn Englund partially attributed the loss to “the general spike in risk aversion globally and in the region in November, which was combined with ‘lack-of-liquidity-driven’ falling share prices on the Iraq Stock Exchange and higher yields, while the ongoing appreciation of the Iraqi dinar stalled–at least temporarily.”

The open-ended mutual fund structured vehicle’s largest losses during the month were in a few Iraqi financial services names such as Dar ElSalam Investment Bank and Kurdistan International Bank, which both lost a 25% of their value in November.

Going forward, Englund said he expects the hiccup in the Iraqi equities market to subside and the prevailing improved security and macroeconomic situation in Iraq to help “breath new life into the stock market and investors' sentiment in 2008.”


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of