Wednesday, 23 July 2014
Last updated 31 min ago
Oct 16 2008 | 2:40am ET
The latest hedge fund flagship to find itself taking on water in stormy seas is Citadel Investment Group’s Kensington Global Strategies Fund.
The $10 billion fund is down by as much as 30% this year, according to media reports, with its varied portfolio losing money almost across the board. The fund’s holdings in convertible bonds, equities, corporate debt, structured credit, energy, reinsurance and mortgages were all battered in September, Citadel told investors in a letter this week. Only the fund’s macro bets turned a profit last month.
Barring a major rally in the fourth quarter, Kensington will post by far its worst-ever year. To date, its only negative year was 1994, when it finished down 4%; through September, it was down about 23%. Last year, the fund returned 30%.
“Regretfully, I did not foresee the financial disaster that was to unfold in September,” Citadel chief Kenneth Griffin explained in the letter.
“In the weeks to come, I expect we will continue to see significant volatility in our earnings as the world manages through the unfolding crisis.”
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…