Kleinheinz Capital Partners, founded by John Kleinheinz, will return money to investors as the value hedge fund callis it quits. Kleinheinz in a letter to the Investors today, said that the fund’s position is halfway in the closing process and is 65 percent “through the process”.
“I am not enjoying running the fund as much as I used to,” Kleinheinz said in his letter. “Managing a fund like ours requires me to do a lot of things that make me a less effective investor.”
Morningstar Investment Conference: Using Annuities In A Portfolio For Added Stability
Over the past decade, annuities have fallen out of favor with investors. These retirement products became popular in the US during the Great Depression when potential retirees were looking for a secure income stream that would be unaffected by stock market volatility. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More
Brencourt Advisors LLC and Weintraub Capital Management LP also announced last month that they are cplanning to wind up as the result of poor gains. The hedge fund Industry is struggling with subpar performance and new regulatory requirements. This year, around 424 hedge funds were liquidated. The percentage rise was 14 percent more than the previous year. Yet another hedge fund company, Corriente, in its letter to investors announced that its closing the firm’s master fund after nearly four years of “extremely poor and disappointing performance”.
Mark Hart, founder of Corriente, said although the fund managed to give a 10 percent annual return since its inception, but the reason of its poor performance is “taking a far too bearish stance on risk assets in general and on the sovereign debt crises in Europe and the economic situation in China”. Mark Hart condemned central banks and government for over intervention and thus reducing volatility and making investing at a large scale more difficult.
Kleinheinz capital, a Texas-based hedge fund, reported returning all of its investor’s money after the end of the year. The rest of the money would be returned after Audit. The firm said that approximately 2 percent of the total portfolio is not liquid and so it will take longer to be paid.
Kleinheinz capital has an asset base of $4.3 billion. The employees totaled to 24 as of December 31st, according to a regulatory filing on March 29. The firm was founded in the year 1996. It may employ “any and all types of investment analysis and strategies, including fundamental and technical analyses,” it said in the filing. “We employ a macroeconomic approach in selecting investments”.
KCP or Kleinheinz Capital Partners detracted in the third quarter by 1.85 percent, while the monthly returns for September were down by -1.18 percent. It is worth mentioning that KCP under-performed in 2011 and was down over 27 percent in the last year. KCP’s largest positions are in Apple Inc. (NASDAQ:AAPL), Monsanto Company (NYSE:MON), China Mobile Ltd. (NYSE:CHL), LUKOIL (PINK:LUKOY), THAI UNION FROZEN -R (PINK:TUFRF), and Ocwen Financial Corporation (NYSE:OCN), among others. The fund lost on its investment in China Mobile, but profited on other major stock holdings.