Augustus macro hedge fund doubles assets

Date: Wednesday, December 3, 2008
Author: James Molony, Reuters

UK-based fund firm Augustus Asset Managers said on Tuesday assets under management in its fixed income and currency macro hedge fund have bucked market trends and doubled in the year to end-October.

Augustus, formed from the management buyout of Julius Baer Investments, said assets at the JB Global Rates Hedge Fund have grown to $308.8 million in the year to end-October, up from $134.8 million.

During the period the fund, which takes directional bets in fixed income and currency, has returned 13.56 percent.

Augustus has assets under management of about $12 billion in long-only, absolute return and hedge funds.

During recent months a number of hedge funds have imposed longer lock-up periods on certain funds in the face of heavy investor redemptions and falling returns.

Global macro funds -- which take bets on the direction of asset classes, usually through futures -- is one of only three hedge fund strategies to have delivered positive returns this year.

According to Hedge Fund Research, macro funds have returned 3.57 percent year to date. Only hedge funds specialising in short selling have returned more while the industry as a whole is down 16.41 percent.

"Current market dislocations amid rapidly slowing global economic growth are presenting some interesting fixed income opportunities," Adrian Owens, manager of the fund, said.

Next year he said opportunities will arise in inflation-linked securities and currencies as value and fundamentals reassert themselves as key drivers of markets rather than deleveraging. (Reporting by James Molony; Editing by David Cowell)