Funds Hub

Money managers under the microscope

How much volatility can you take?

July 7, 2010

It’s been a volatile few months for stock markets and many hedge funds have suffered as a result.

However, few have had such volatile performance as Superfund.

The managed futures fund, whose founder Christian Baha we profiled in May and who pops up in today’s FT in a section extolling the virtues of ‘Vienna as a financial centre’, saw its aggressive share class fall a hefty 28.37 percent in May’s turbulent markets, having lost more than half its value in 2009.

Nevertheless, the fund’s ability to profit when times are good saw it deliver a return of 25.94 percent in March (and 74.18 percent for the whole of 2008), meaning it is down a more manageable 13.94 percent so far this year.

Baha told me during the interview for the profile that losses such as those seen in 2009 happened “every 20 to 30 years” and that one simply has to “get through such periods”.

We’d be interested to hear from you. How big a loss or profit have your investment funds made in a month? And how much volatility is acceptable before it becomes too much for an investor?

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