Skip to main content

This Would Explain Why JW Henry Never Called

  • Author:
  • Updated:

On Thursday, we published a list of hedge funds that were rumored to be in trouble, trouble being a relative term ranging from “out of printer paper” to “blowing up.” Since we had a lunch thing to get to, we asked representatives from the various funds to call us and say “No, we’re not blowing up,” if that was the case. Their names would then be crossed off The List. In the absence of such a call, we would assume the fund was indeed going through a rough patch. While many obliged and were, as promised, lined through, JW Henry never got in touch. Today, Bloomberg confirms our suspicions as to why—the Boca Raton-based fund, whose owner also controls the Red Sox, saw losses in its Financial and Metals Portfolio of 11.7 percent in July. The losses from last month have been largely attributed to a doubling in currency volatility, which “knocked the `’carry trade' off its perch as the most profitable strategy in foreign exchange.” (The firm’s assets have fallen 75 percent since November, to $479 million.)
``The turmoil in the credit markets had a collateral effect on the currency markets as investors bought back short positions in low-yielding currencies,'' president and COO Kenneth Webster said on the firm’s website. He declined to comment further, but is probably hoping to himself that JWH is on the “right side,” when and if another one of these “anomalies in the market” happens again. Just to be prepared, let us ask you this:

Opinion Polls & Market Research

Campbell, John Henry Get Losses on Carry Trade Exit [Bloomberg]
Curse Of The Bambino On The Trading Floor? [BusinessWeek]