Managed-Futures Giant Hurt By Currencies in ‘07

Feb 4 2008 | 1:00am ET

Managed-futures behemoth Campbell & Co. was hurt last year by trades in the currency market, as well as in fixed-income and equities. The firm’s $11 billion Financials, Metals & Energy Large Portfolio was down 13.38% and its 22-year-old $1.5 billion Global Diversified Large Portfolio lost 11.21%—its first losing year since 1986.

“Losses for the portfolio from currency trading continued into year-end as market participants sold high yielding currencies, particularly the British pound,” wrote Teri Becks, president, in an investor letter. “Fears that the U.K. housing market and general economic growth would slow caused the Pound to finish off 4% on the month. Smaller losses were experienced in fixed-income trading and trading in equity indices as U.S. and European stock markets were extremely volatile in December, while Asian stocks continued to move lower.”
 
However, the portfolios did manage to sweat out small gains in base and precious metals as gold rallied 6% to all time highs amid strong buying in the face of a bounce in the U.S. Dollar, but obviously not enough to offset the losses.

So how is the firm handling its losses? Becks said that Campbell “has responded to the performance difficulties of 2007 with intensified efforts in research, highlighting the need to diversify across investment horizons and to monitor and respond to sharp factor-risk contagion more nimbly."


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note