Hedge Fund Veteran abandons a brutal market

Bloomberg
Veteran Hedge Funds Bloomberg James Alexander Michie

Likewise, another veteran of hedge funds is leaving a brutal market.

Philippe Jabre is the founder and CIO of Jabre Capital Partners S.A, a Geneva-based hedge fund and a former managing director of GLG Partners, a UK-based hedge fund.

That being the case, Jabre is returning money to investors after a “particularly challenging” year, which adds to the growing list of veterans of hedge funds who renounce an industry where opportunities to generate money have been reduced.

It should be noted that it has been said that the market is increasingly difficult to anticipate. In fact, there is an estimate of 174 hedge funds that were liquidated in the third quarter.

As already mentioned, Jabre Capital Partners SA, headquartered in Geneva, is returning the customers’ money to the three funds personally managed by Jabre. Two remaining funds, one focused on emerging markets and the other on European credit, will continue to operate with external money.

Hard year for hedge funds

It is necessary to highlight one point and that is that the year 2018 has been exceptionally difficult for hedge funds. This is due to the fact that the prices of the assets sank and the volatility returned after a period of calm. Likewise, large price changes, a declining bull market, and rising interest rates were seen as the elixir that the $ 3.2 billion industry needed to overcome years of underperformance. But for its part, several companies were affected by the swoon of the market last month and are heading to its worst year since 2011.

In a newsletter dated December 12, Jabre wrote that he is selling positions in a “disciplined” manner and intends to return most of the income in February. Likewise, Jabre Capital managed around $ 1,200 million in assets as of April with more than 40 employees.

The letter reads, “In previous periods, weakness created opportunities, but when analyzing the perspectives for 2019, we are worried that we will not see those opportunities”, added to that, “Both the political and economic perspectives remain confused and a clear direction”.

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Source: Sofia Horta e Costa and Bei Hu | Bloomberg

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