Tantallon Capital | Hedge Fund Notes
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Resource #1: 10.6.08 Tantallon Capital, founded by Merrill Lynch & Co. former head of sales Nicholas Harbinson, closed one of its hedge funds after bad bets on Asian stocks, three people familiar with the matter said.
The Singapore-based firm shut its Tantallon Smaller Companies Fund, managed by Steve Sun, after it lost 25.6 percent this year, according to data compiled by Bloomberg, more than twice a benchmark that tracks similar funds. Assets shrank to $18 million as of end July, from as much as $29 million in February, the people said, asking not to be identified because details are private. Source
Resource #2: (11.15.08) Hedge Funds Lost $100 Billion on Investor Withdrawals
The global hedge fund industry lost $100 billion of assets in October, according to an estimate from Eurekahedge Pte, as firms including Sparx Group Co. and Tantallon Capital were buffeted by investor redemptions.
Funds fell an average 3.3 percent in October, based on preliminary figures from the Singapore-based data provider, as measured by the Eurekahedge Hedge Fund Index, which tracks the performance of more than 2,000 funds that invest globally. The loss compares with the 19 percent slide in the MSCI World Index last month, as managers who trade futures, known as commodity trading advisers, or CTAs, and those who invest in Japan helped offset declines, Eurekahedge said. The biggest market losses since the Great Depression and investor withdrawals hurt the $1.7 trillion hedge funds industry that manages largely unregulated pools of capital. The index of global funds has lost 11 percent this year, set for the worst performance since 2000 when Eurekahedge began tracking the data.
This wave of redemption in the hedge fund industry is going to last for at least another six months,'' said Toyomi Kusano, president of Kusano Global Frontier, a hedge fund research firm in Tokyo. ``Managed futures funds are the solo winners in this environment and hedge funds that are investing in futures are the one bright spot in this environment.'' Sparx, Tantallon Earlier this week, Sparx Group Co., Asia's biggest hedge- fund manager with $8.5 billion in assets, posted a first-half loss on redemptions and falling stock prices. Its assets under management on a preliminary basis were 839.1 billion yen ($8.8 billion) as of Oct. 31, compared with a peak of 2 trillion yen in August 2006.
Assets in Singapore-based Tantallon Capital's flagship Tantallon Fund shrank to $284 million at the end of October, according to data compiled by Bloomberg. The fund, managed by Merrill Lynch & Co. former head of sales and Tantallon co-founder Nicholas Harbinson, stood at $877 million at the end of August, from as much as $1.5 billion at the start of the year. Tantallon Capital was ranked by Alpha Magazine as Asia's 11th largest hedge-fund manager as of March 31. In Europe, Man Group Plc, the largest publicly traded hedge- fund manager, reported assets under management, which stood at $70.3 billion as of Sept. 30, fell to $61 billion at the beginning of November, the least since March 2007. Japan Outperforms In terms of regional mandates, the Eurekahedge Japan Hedge Fund Index was the best performer, declining 0.8 percent last month, even as the benchmark Topix index slid 20 percent, the firm said. Trades that involved selling regional stocks and took advantage of currency moves helped stem losses, Eurekahedge said. The yen strengthened more than 7 percent against the dollar in October.
Among Japan funds, the 2.7 billion yen Sparx Japan Stocks Long Short Fund, also known as ``Best Alpha,'' declined 2.2 percent in October, according to monthly data posted on the company's Web site. Gains in stocks such as Shin-Etsu Chemical Co., the world's biggest maker of polyvinyl chloride resin and silicon wafers, and KDDI Corp., Japan's second-largest mobile phone operator, contributed to the performance, it said. The Eurekahedge Asian Hedge Fund Index lost 4.3 percent. source
Resource #3: (10.7.08) TANTALLON Capital, founded by Merrill Lynch former head of sales Nicholas Harbinson, is understood to have closed one of its hedge funds after bad bets on Asian stocks.
The Singapore-based firm shut its Tantallon Smaller Companies Fund, managed by Mr Steve Sun, after it lost 25.6 per cent this year, which is more than twice a benchmark that tracks similar funds. Assets shrank to US$18 million($26.3 million) as at the end of July, from as much as US$29 million in February, sources said.
The main Tantallon Fund, which underperformed peers this year following double-digit returns from 2004 to 2007, dropped 40 per cent as clients withdrew money.
Tantallon Capital is the fourth-largest hedge fund in Singapore, with US$1.43 billion worth of assets under management. source
Resource #4: Tantallon Capital Single Fund Closure Notice
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Research for this Tracker profile contributed by Mark Guirguis