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Alternative Market Briefing

Barnegat to close hedge fund to outside investors on weak opportunities

Tuesday, April 10, 2018

Komfie Manalo, Opalesque Asia:

Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunities, profits mean existing opportunities have lessened," Treue said in a statement obtained by Opalesque.

Treue made the announcement as his Barnegat Fund fell 0.3% in March, leavings its YTD gains to 0.5%, a sharp contrast to the fund's strong performance last year when it gained 19.2% as of October.

Treue stated, "On the back of last year's gains, we have received more inquiries of interest than normal. However, I worry about not having many opportunities to offer investors. In particular, I worry a situation in which new investors, with whom we have not built up any goodwill or gains, might suffer a loss and want to redeem at the worst possible time. I am trying to avoid that predicament by closing the fund to new investors now."

However, Treue clarified that the fund is not in a terrible spot. While the hedge fund has some appealing trade, he said there are not as many mispiricings as normal. He explained that he does not want to dilute existing investors (including the employees of Barnegat, who are the second largest investor in the fund) with new investors duri......................

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