Saturday, 20 December 2014
Last updated 22 hours 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.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.