Senvest Hedge Funds Drop 59%, Manager Sees Glass Half Full

Dec 22 2008 | 6:26am ET

While losing 59% in one year may cause some hedge funds managers to head for the hills, Richard Mashaal isn’t deterred. Mashaal’s small-to-micro cap long/short funds, Senvest Israel Partners and Senvest Partners, are down 56.48% and 59.4%, respectively, through November.

“We’re having a very bad year for a whole host of reasons,” said Mashaal, whose firm managed $277 million in total assets as of the end of November. “There were fairly motivated sellers and hedge fund liquidations and I think we were in some of these names that were affected by those events.”

The funds’ net long positions also hurt their performances this year.

“We were in the range of 30% to 60% net long for most of the year and took that to 100% net long in October, so that hurt us as markets continued to fall, and we thought it was bottoming at that point,” said Mashaal.

He added that the funds have had minimal redemptions because of the firm’s longstanding relationships with its investors. In fact, roughly half of the funds’ assets belong to his family.

Mashaal remains optimistic, believing that his funds will “come roaring back” if their past performances repeat themselves. According to public databases, Senvest Partners dropped 27.78% in 1998 only to come back the following year up 151.19%. The same fund lost 37.2% in 2002 and came back again in a big way in 2003, gaining 168.61%.

“We’ve had two years of over 100% net returns. So who knows if another 100% year is just around the corner?” said Mashaal.

The Senvest funds are affiliated with Senvest Capital, which is a publicly traded company listed on The Toronto Stock Exchange.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.