Wednesday, 1 April 2015
Last updated 5 min ago
Oct 15 2008 | 12:34pm ET
The Children’s Investment Fund is used to battling intransigent company management, not negative returns. But the prominent activist hedge fund shop was among the ranks of the battered last month, one of the worst in the history of the hedge fund industry.
The London-based firm told investors it lost almost 15% in September, Financial News reports. TCI, which is not known for its patience when it comes to making changes at its portfolio companies, is asking its clients for just that, saying that a recession is “now inevitable” and investors “need to have patience to ride out this storm.”
The fund lost 15.6% during the third quarter, leaving it down an eye-popping 25.8% for the year. TCI investors are more used to annualized returns of about 26%.
“In hindsight, the only thing we could have done to avoid the falls in the fund was to go to cash or aggressively hedge with futures,” the firm told investors. “Recent aggressive liquidation of stocks by funds has caused many stocks to deviate substantially from intrinsic value in any scenario short of a widespread collapse in the world economy.”
Still, all was not gloom and doom. In a “moderate recession,” TCI said its holdings could return as much as 20% annually over the next five years.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…