Thu, Dec 14, 2017
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bob Treue's hedge fund up 19.2% through October

Thursday, November 16, 2017

Komfie Manalo, Opalesque Asia:

The year 2017 is turning out to be a good year for hedge funds. Data provider Hedge Fund Research says this year could be the best year for the industry since 2013 in terms of performance.

The Barnegat Fund Management's $648m fixed income relative value hedge fund is up 19.2% in 2017 (+0.7% in October), bringing its net compound annual rate of return to +16.5%/year since the fund's launch in 2001.

Hedge fund manager Bob Treue commented, "In fixed income relative value trading, we try and capture mispricings in the market. In a simple example, if we had one Treasury with a yield of 4% and another Treasury had a yield of 3% with the same credit, same maturity and same issuer, that would be a great trade. But, if that mispricing widened to 5% v 2.5%, we would suffer a mark-to-market loss."

Treue said that his fund would have a better opportunity looking forward. He also pointed out that this style of trading can be frustrating in the sense that the best time to invest is when the fund actually loses money (anomalous trades became more anomalous and Barnegat has better opportunities looking forward).

He added, "Conversely, when we make money, unless we find new trades and new anomalies, our opportunities have lessened."

One imperfect, but helpful indicator that Barnegat uses to look at the size of its mispricings is what they call 'Carry', Treue said. This represents the......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. ...And Finally - The ongoing gun saga in the U.S.[more]

    From As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c