Why HIQ’s losses are great
Last month HIQ Invest Market Neutral Fund lost an astonishing 12,1%. That’s even worse than the month of March (-8,56%). Losing over 20% in two months is nothing short of a disaster for hedge funds. The results over 2014 haven’t been very positive either (-15,62%). Troubled times ahead for the sister of DeGiro (same owners).
Always look on the bright side of life
However, management looks on the bright side of life. Less is more. The fund has seen investors taking the money from the table – and combined with the losses the fund is a lot smaller than it used to be. Which is great in opinion of the fund managers. After all, a small car is easier to drive.
Less money, less problems. Easier to generate a little profit with a tiny fund. Strategies which only work on a very small scale suddenly make sense again. Income from “market making” activities are also limited to a fixed yearly sum. With the lower assets under management this is getting significant. Could be, but even with the astronomical 3% managed fee, a certain critical mass for hedge funds it required.
Hiring traders again
Other news is they’ve got a million from their own money to hire a few human traders. Because this electronic automatic trading didn’t really work out. Maybe it’s not too late to try something completely different. Their monthly news letter can be found here (nl).
Better results at Done Capital
It’s easy to poke fun of losing hedgies (office furniture anyone?). Good news is less interesting, but as a kind of compensation check out this hedge fund Done Capital. I like their website, and one of the managers is Iain Somers. Once the guy who hired the HIQ managers at AOT, and nearly a decade ago he did his homework in famous a Getronics corporate action. Not surprisingly, their results are a lot better.
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Getronics options are a classic!
After this Euronext changed the rules.
Where does HIQ’s AUM stand at the moment? Couldn’t find it on their website.
Look! Jack’s friendship with Ian is even on television here: https://twitter.com/IainSomers/with_replies
Cute.
hiq’s present aum is undisclosed. they stopped updating their “maandopgave” (monthy overview) that contains such information at the end of last year, despite the obvious legal requirement (art. 50 Bgfo). another sign on the wall i’m afraid. i would like to see them succeed with their fund, but i think they need to focus all of their attention on the fund or exclusively on the brokerage of degiro and stop wasting their time on silly trials with someone else’s smart order router. don’t they have better things to do with their time?
Yesterday I called their IR-guy, nice chap. According to him it’s around 40 million eur.
they do have better things to do with their time, but like so many of us, they are too stupid to realize there is a huge opportunity cost to anything trivial they spend their time on
their aum is pretty well disclosed?
http://tinyurl.com/m6226nh
did he tell what spreads they lost their shit on, i can just squeeze them out completely and be over with it before the next monthly report is scheduled
My guess is the current AUM is 40m euro.
Last month was $65m. Take 12% loss, and 15% investors walking away..
you don’t have to guess the current AUM?
http://www.amsterdamtrader.com/2015/05/why-hiqs-losses-are-great.html#comment-24198
the headline is not very eloquent
‘WHY HIQ’S LOSSES ARE GREAT’
how about ‘Why nobody cares about another hedge fund having difficult patch’
Could be worse. Could be that Frog Fund….
define frog fund
Why does the Frog fund still exist? (serious question)
http://www.iexprofs.nl/Product/903/Frog-Fund.aspx
http://www.frogcapitalmanagement.com/management/prestaties/0/58/
Last month was -40% or so. Never a positive year!
No idea: that Frog fund (like some others in that HHFI) are a complete fraud!
a ‘fraud’ wouldn’t be publishing the draw downs so boldly?
what’s the story here?
some form of money laundering?
i would like to get some frog protection?
Best Frog protection is to stay well clear….
returns look like what q leverage inverse equity etf or vix etf would look like