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Investments News Friday 24th August 2007
Mixed fortunes in Hedge Funds sectorSignificant upheaval in the financial markets has resulted in varied investment performance in some of the biggest names in the hedge funds sector this month. Two of the largest players, Goldman Sachs and DE Shaw have continued to suffer substantial losses, while a fixed income arbitrage fund run by UK based firm Capula Investment Management has shown gains of almost 2% in early August.DE Shaw?s Valence fund has been hit particularly hard showing losses of 22% so far this month. The company, who are forerunners in the field of quantitative investment, estimate losses of 7% in their Composite multi-strategy fund. Investors have stated that Goldman Sachs? Alpha fund has also been hit hard in August with reported losses of 16%. The company?s fortunes improved however, after the decision was made to inject a further $3bn of capital into its global equity opportunities fund. This move seems to have proved fortuitous as the fund rose 12% in the following 5 days. In contrast to these losses, Capula, founded by Japanese investors Masao Asai and Yan Huo, recorded gains of 1.88% in the month of August. Up 6.99% this year to date, providing an average net return of 15.56% since its foundation in 2005. The company employs a fixed income arbitrage strategy that has generated greater returns than other hedge fund strategy in the month of August. While the fixed income arbitrage index was up 0.31%, many other individual hedge funds using the strategy reported losses for the same period. Each of the other nine strategies covered by Credit Suisse/Tremont lost money during the first 10 days of August. Other Investments Recent News and ArticlesWhen Is the Best Time to Start Investing » Settlement of Trusts and Acting as Trustee or Protector » |
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