Funds Hub

Money managers under the microscope

K1 performance chart shows steady gains

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We hear German hedge fund K1 and its boss Helmut Kiener have attracted the attention of prosecutors, so it’s worth dipping into the hedge fund performance numbers to see what all the fuss is about.

Below is a chart from the K1 website showing the serene progress of Kiener’s “K1 Fund Allocation System” until the financial crisis sparked an unprecedented wobble that was quickly righted. The total return since inception though, is still comfortably above 800 percent.

K1 performance chart 

 

 

 

 

 

 

 

 

 

 

Lipper data show the fund is up 2.04 percent over the three-months to end-September, up 7.49 percent over six months and up 10.85 percent over the last 12 months. Nothing spectacular, but consistently outpeforming other hedge funds in Lipper’s multi-strategy benchmark.

Allocations are also listed on the website, and show a 25.6 pct exposure to Equity Hedged strategies, 24.3 pct to Relative Value, 18.5 pct to Event Driven and 17 pct in funds of funds.

Back in rude health

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The hedge fund industry, it seems, has come out of intensive care and is doing laps around the block again.

After last year’s turmoil, funds are seeing assets flow back, performance pick up and confidence return.

Morning line-up

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Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5sHedge fund investor goal: An exit plan -WSJ

Hedge fund compensation; New funds, new tricks – Seeking Alpha

Hedge funds gain in August – Reuters

Alpha advertising - FT Alphaville

From the ashes: Can listed hedge funds rise again? – CityWire

Shorts suffer in the rally

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For many money managers who bet exclusively that securities will fall, July may go down in history as their personal Waterloo —  .

When performance data is announced in the next few days, the numbers will show high single-digit or even double-digit losses at so-called dedicated short-sellers, industry analysts and investors forecast.

Man finds a friend

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There has been plenty of bad news surrounding Man Group in recent months.

rtxabsvAssets at end-June were $43.3 bln, compared with $79.5 bln a year before. Flagship managed futures strategy AHL, which not so long ago was boasting some superb-looking performance figures in spite of the credit crisis, is down 5.1 percent over the past year after a poor first half of 2009.

And Man Group’s shares have underperformed the market by 44 percent over the past year, though they have outperformed during 2009.

No tragic ending at Toscafund

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Puccini’s tragic opera Tosca ends with the heroine, realising she has been tricked by the evil Baron Scarpia and that her lover has been executed, hurling herself to her death from a castle parapet in despair.

rtr20bsmHowever, despite last year’s tragic performance — an approximately 60 percent plunge in the flagship fund after holdings such as Redrow and Taylor Wimpey fell sharply — it would seem Martin Hughes has sidestepped such an unhappy ending at Toscafund, where redemptions have tailed off and fund performance is strong once again.

It just gets worse for funds of hedge funds

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rtr23yfgFunds of hedge funds are taking a greater share of the pain in the industry’s downturn.

Even as overall outflows from hedge funds slow, redemptions from fund of hedge funds are accelerating. 

Little and large

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The challenges of volatile markets and client redemptions are finally driving the consolidation in the hedge fund sector that some commentators have been expecting.

rtxccu6Yesterday it was announced that hedge fund firm Cheyne Capital would buy fund of hedge funds firm Altedge Capital, a smaller boutique, and appoint Altedge CEO and CIO Chris Goekjian as partner and CIO.

Hedge funds for beginners

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It’s encouraging to see that, even as many hedge fund investors rush for the exit, there is still some appetite to invest, as highlighted by the National Association of Pension Funds’ optimistic publication of a beginner’s guide to the industry.

rtx7phh1Entitled Hedge Funds made simple and starting with “What is a Hedge Fund”, the guide’s blurb tells us that ”the role of hedge funds, and investing in them, has become more prominent in the last year”.

A timely withdrawal?

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Spanish bank BBVA’s move to close down its alternative investment arms including hedge funds shows just how much things have changed in the industry, even within the past year.

rtr22m3jBBVA said it had “decided to anticipate the possible effects of the current situation of markets and of the alternative investment industry”.

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