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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 ...................... To view our full article Click here
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