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Alternative Market Briefing

$500m Barnegat Fund, with a decade of annualized 18% returns will consider closing fund again

Wednesday, March 02, 2011

amb
Bob Treue
From Kirsten Bischoff, Opalesque New York:

Currently just below $500m in assets, The Barnegat Fund, a NJ-based, fixed income fund that became very well known after returning a resounding +132.68% in 2009, will need to consider closing the fund to new assets again, Founder Bob Treue, told Opalesque TV’s Greg Despoelberch during a recent interview.

The decade old fund, which has thus far returned +406% net to its investors since launching, was closed from 2001 to 2008 when it was previously at $500m asset level. “We have pretty good opportunities, and that is the reason that we are open currently,” says Treue. “But speaking selfishly, the employees of Barnegat control 20% of the fund. So, selfishly, we do not want to dilute ourselves that much.” Additionally, Treue attributes some of the firm’s 2008 survival to being nimble enough to free collateral. “It was a very difficult time for us, but we were small enough and nimble enough that we were able to survive.”

Treue came to work in fixed income arbitrage after working in currencies, and then taking his roommate’s place on an interview with a fixed income arbitrage fund, which saw him working at a Princeton, NJ-based fund for five years. After that he moved to Paloma’s London office until the fall of 1998 when Long Term Capital wend under and Treue thought the market opportunities left in the wake of that failure would offer the best envir......................

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