Ospraie To Liquidate Flagship Fund

Sep 3 2008 | 9:50am ET

Ospraie Management will shutter its flagship hedge fund, which lost more than a quarter of its value last month on commodity stock bets.

Firm founder and portfolio manager Dwight Anderson delivered the bad news to investors in a letter yesterday. The fund, which boasted assets of $2.8 billion at the beginning of August, lost 27% during the month and was down more than 38% year-to-date. The year’s losses triggered a clause releasing the fund’s investors from their lock-up agreements, allowing them to redeem what is left of their investments early.

“Not only as a portfolio manager, but as one of the largest investors in the Ospraie Fund L.P., I have shared in the losses with you,” Anderson wrote in his mea culpa. “After nine years of striving to be a good steward of your capital, I am very sorry for this outcome.”

The letter detailed plans to return 40% of the fund’s assets to investors by the end of this month, with another 40% to come by the end of the year. The remaining 20% could be tied up in illiquid investments for as long as three years, Anderson wrote.

The huge losses came on investments in energy, mining and natural resources companies, making Ospraie the latest victim of the volatility and turmoil in the commodities markets. According to Securities and Exchange Commission filings, Ospraie Management owned such names as Alcoa Inc. (down 17% year-to-date) and Arch Coal (up 1.74%), though it is unclear which stocks were owned by the flagship.

New York-based Ospraie manages $4 billion outside of the Ospraie Fund.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.