First $1.5 Billion Hedge Fund Casualty Of 2016 Blames HFTs For Making A Mockery Of Investing
- First $1.5 Billion Hedge Fund Casualty Of 2016 Blames HFTs For Making A Mockery Of Investing
by Tyler Durden, www.zerohedge.com
Following a year of historic routs in the hedge fund space, yesterday we pointed out that after the new year’s break, it was time for the pain among the active investors to return:
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Less than 24 hours later, this is exactly what happened when as Bloomberg reports, Nevsky Capital’s $1.5 billion hedge fund is shutting down and returning money to investors. The reason: the emergence of computer-driven trading strategies and index funds diminish money-making opportunities.
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What again is surprising about this latest hedge fund liquidation, is that the fund was not a significant underperformer, in fact according to BBG it was up 0.9% in 2015, outperforming the majority of the “smartest money” out there:
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The London-based firm managed by Martin Taylor and Nick Barnes makes bets on rising and falling share prices in developed and emerging markets. The fund returned 18.1 percent in 2013 before losing 1.4 percent the following year. In the first 11 months of 2015, the fund was up 0.9 percent, according to data compiled by Bloomberg.
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Even so, the founders have had enough with a centrally-planned, HFT manipulated “market” which is that only in name.
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“We have come regretfully to the conclusion that the current algorithmically driven market environment is one which is increasingly incompatible with our fundamental, research orientated, investment process,” Taylor, the firm’s chief investment officer, said in a statement.
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