Iraqi-Focused Fund Faces First Losing Year

Dec 30 2008 | 12:35am ET

The Babylon Fund dropped 1.6% in November, bringing its year-to-date losses to 20.1%. The firm said odds are now strong that it might have to summarize 2008 as the first “loss-making year” since the fund’s inception in 2006.

Bjorn EnglundBjorn EnglundBut portfolio manager Björn Englund remains upbeat about the fund’s performance relative to the markets it invests in.

“While, of course it is never satisfying to add negative value in any month, it seems as Babylon faired extremely lucky, once again, compared to the heavy sell-offs experienced in the MENA, GCC and also in the global frontier markets,” he wrote, in a monthly investor letter.

Within Iraq, Englund noted that the steep fall of crude oil prices continued in November, taking a heavy toll on most oil companies in Iraq. Also, the general sell-off of risky debt resulted in the Iraqi bond trading briefly all the way into default territory—mainly due to liquidity concerns.

“We now buy these bonds on the dips as we see good value as well as relatively good diversification and liquidity characteristics,” he wrote.

Related Articles:

Babylon Fund Posts Modest Gain in April
Babylon Fund Gains Access To Iraqi Stock Exchange
Bridges To Babylon: New Fund Focuses On Iraq


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

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.