Baring’s China Hedge Fund Down 18%

Jul 9 2008 | 11:44am ET

What a difference a year makes. Baring Asset Management’s China Absolute Return fund last month dropped 8.4%, leaving it down 18.83% year-to-date. The four-year-old fund is on pace for its worst year ever after returning 38.58% last year.

Last month, Chinese markets continued to feel the effect of the higher crude oil price and weaker global equity markets, according to the firm. Investor sentiment was also affected by the energy price liberalization policy announced by the Chinese government.

“The equity market, as measured by the MSCI China Index, fell by 12.2% during the month in U.S. dollar terms. The power generation and telecom sectors were particularly weak performers, with power companies hit by the tariff increase and telecoms affected by government-imposed restructuring,” said the firm.

Going forward, Baring said it has become more cautious on the outlook for the equity market in China over the near term since the short-term downturn, against a background of long-term growth, “may be more challenging than we previously thought.”

The US$40 million fund began trading in July 2004 and is listed on the Irish Stock Exchange.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.