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John H. Burbank III Bailey McCann Opalesque New York:
San-Francisco based global investment firm Passport Capital reported its fourth quarter returns on Friday. The Passport Global Fund (Class A) was down 7.7% verses +7.3% for the MSCI AC World Index and +11.8% for the S&P 500.
The fund’s YTD performance is down 18.4% with annualized performance of 4.8% over 3 years and 12.5% over 5 years. It has returned 19% since its August 2000 inception, compared to the MSCI AC World index at 1.6% and the S&P500 at 0.8%.
As of the end of Q4, Fund and Passport Capital’s AuM were $1.8bn and $3.8bn respectively.
In a letter to investors obtained by Opalesque, John H. Burbank III, CIO, noted that equity longs were up 2.0% gross while equity shorts lost 6.2% gross. Currency hedges and energy futures also posted losses for the fund while mortgages were up +0.2% gross. The letter goes on to note that while the fund worked to control exposure to volatility and beta, the fund underperformed overall for 2011.
Passport's investment process uses a combination of macroeconomic analysis to develop major themes and fundamental research on individual companies to create global portfolios. According to the firm’s website, the global strategy is a long-biased, value-oriented strategy seeking significant inefficiencies in the world’s most promising capital markets.
Burbank cites the lack of market trend and liquidity that plagued most of th...................... To view our full article Click here
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