Woodbine Capital Advisors is a hedge fund started by two former traders from George Soros’ Soros Fund Management.
According to Michelle Celarier of the New York Post.. Assets under management have dropped from a peak of $3.2 billion in July 2010 to approximately $500 million.
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Sources familiar with the matter have told us that the fund was up 3.7% in May. Year to date the fund is up 1.6%.
In 2009 the hedge fund was up over 13%, followed by a 3% gain in 2010. For 2011, the fund lost approximately 12%.
The majority of the gains were due to currency gains, namely the short position in the Euro versus the dollar. We reported earlier this month, that hedge Fund euro Shorts hit a new record high. The Euro fell over 7% versus the dollar in the month of May. The fund is still short the Euro versus the Canadian and American dollar.
Gold is a long position as the response by the European Central Bank could be highly inflationary.
In April, net loss was over 2% due in part to a short position in the Japanese Yen. The managers have not been covered, although they believe it may take time to profit. The position is small, and could increase if Japan takes further easing measures or if traders take their eyes off of Europe, and focus more on the Japanese economy.
The fund managers are concerned over the economic situation in Europe, China and the United states. The European problem cannot be solved with monetary policy. No grand solution for Europe seems likely, and the situation is going to deterioration further. The fund is bearish in light of these growing concerns.
Another short position is copper and the Australian dollar versus the American dollar. A Chinese slow down will hurt the export driven neighbor of China, Australia. Price declines will occur as a result of the deteriorating Chinese economy.