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Komfie Manalo, Opalesque Asia:

The Barnegat Fund reported that it recovered from the small loss the fund sustained in July with a small gain in August. The fund posted a 0.5% gain during the month and is up 16% in 2014. Barnegat’s compounded annual rate of return since its launch in 2001 is +18.74%/year.

As at end August, the fund’s assets under management stood at $737,804,679 with an annualized volatility of share price at 5.3%.

Bob Treue, founder and CEO of the Barnegat Fund commented, "Obviously, we try and improve our fund each day. However, one area where we have had a lucky break is with the transaction costs of our trades. Dodd-Frank forced generic interest rate swaps in to clearinghouses in 2013. This, alongside electronic execution on Swap Execution Facilities' trading platforms, has reduced the amount of bid/offer we pay to market makers when entering or exiting trades. "

He added that in the past, the fund would look for an appealing price by calling one bank at a time. Now, Barnegat can submit generic trades to a Swap Execution Facility and banks simultaneously compete for its business.

Treau went on to say, "This has helped us reduce our transaction costs. In the end, government regulation can hurt us just as easily as it can help us, but at the moment, we have been fortunate and these changes have reduced our transaction costs significantly."

Treue talked to ......................

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