FrontPoint’s Fixed-Income Arb. Hedge Fund Drops 16%

Aug 15 2008 | 11:45am ET

The bigger they are, the harder they fall. Or something to that extent.

FrontPoint Partner’s $378.5 million Relative Value Opportunities Fund, a fixed-income arbitrage strategy, has been feeling the pinch since the beginning of the year. The fund began its first three months of trading down about 22%, but has recovered some of its losses in recent months to the tune of some 7.6%, according to public databases.

Still, the fund’s performance has fallen in line with those of its competitors dropping 16.09% through June. The Hennessee Arbitrage/Event Driven Index declined 1.48% in July (down 2.26% YTD), with most hedge fund managers hurt by widening Treasuries spreads.

The Relative Value Fund invests in securities and derivatives primarily in the global fixed income and currency markets. It began trading in January 2002 and is benchmarked against the Lehman Brothers Aggregate Bond Index.

FrontPoint manages some $9.4 billion in assets.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note