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Alternative Market Briefing

Kraus Partner`s macro quant hedge fund is liquidated due to difficulties in raising asset

Thursday, March 26, 2009

By Benedicte Gravrand, Opalesque London:

Kraus Partner’s Board decided on March 19, 2009 to put altea SICAV-FIS "Global One" into liquidation.

Silvio Halsig, portfolio manager at Kraus, said the decision was taken “as the threshold for an economically efficient management has never been reached and will, in the opinion of the Board, not be reached in a foreseeable future. Calculation of the NAV has been suspended and the fund will be immediately liquidated.”

He told Opalesque: “The reasons are that we experienced difficulties in asset raising. The current market situation is very hostile to newcomers, especially if you are just a small single manager that can’t bank on his own distribution channel. Further, in times where people believe that (mostly quantitative) risk management leads to mispricing and risk creation, and also following some bad press on quants in general over the past year, there is much distrust against everything that even remotely sounds quantitative. At last, with liquidity being dried up even in exchange traded derivative markets; there is not enough room for manoeuvre.”

It is only the fund which will go into liquidation; the investment manager Kraus Partner, which also manages long-only equity funds, is not affected.

The systematic macro hedge fund altea Global One fund transferred to a Luxembourg SICAV-SIF structure in August-......................

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