21 Nov 2008
The Eclectica Fund, the hedge fund run by Hugh Hendry at Eclectica Asset Management, has produced a positive 38% return to investors in the year to date, lifting some of the recent gloom experienced by the hedge fund sector.
This positive return compares to its sector benchmark MSCI World Index’s negative return of 37% over the same period. Asset allocation is the dominant driver of returns and the fund’s rise has benefited from dynamic allocation from equities and some commodities towards government bonds, interest rate swaps and foreign exchange.
The fund has assets under management of US$210 million and has a broad investment remit including equities, commodities futures and options, FX, fixed income (bonds, swaps, swaptions).
Manager Hugh Hendry said:“This environment is presenting enticing opportunities in the macro space. Governments are determined not to repeat the policy errors of the past and we are firmly of the view this means that Central Banks will keep interest rates lower and for longer than generally expected.”
This positive return compares to its sector benchmark MSCI World Index’s negative return of 37% over the same period. Asset allocation is the dominant driver of returns and the fund’s rise has benefited from dynamic allocation from equities and some commodities towards government bonds, interest rate swaps and foreign exchange.
The fund has assets under management of US$210 million and has a broad investment remit including equities, commodities futures and options, FX, fixed income (bonds, swaps, swaptions).
Manager Hugh Hendry said:“This environment is presenting enticing opportunities in the macro space. Governments are determined not to repeat the policy errors of the past and we are firmly of the view this means that Central Banks will keep interest rates lower and for longer than generally expected.”
