Not All Hedge Funds Did Badly In 2002

by Carla Johnson, Investors Offshore, London

08 January 2003

Despite a continued flow of incoming cash and growing institutional interest, hedge funds had a difficult year in 2002, with average returns of just a few percentage points, forcing many fund managers to dip into their savings to buy the Christmas turkey; and the media are full of dire predictions for 2003. But not all hedge funds suffered.

Aspect Capital Limited, a London based hedge fund manager, reports that it provided excellent returns for investors in 2002, capitalising on the opportunities generated across many sectors by the economic and political tensions which typified the year. The Aspect Diversified Fund, a managed futures strategy, produced 19% for the year, demonstrating again its ability to excel in difficult market conditions.

The Aspect Master Fund was launched in January 2002 and represents the best of Aspect’s diversified range of strategies. Its return of 15% demonstrates the strength of Aspect’s 15 strong research team.

Aspects other funds also performed well, for example, the Aspect International Fixed Income Fund, which returned 10% in 2002. Aspect says its performance is particularly satisfying considering that both the CSFB/Tremont hedge fund index and the MSCI Hedge Fund Composite Index show average performance up between 1% and 2% for the year.

Commenting on the year, Anthony Todd, Managing Director, said:

“Four out of our six funds generated double digit returns in 2002 which is an excellent result given the tough market conditions. One of the highlights of 2002 was the launch of the Aspect Master Fund, which brings to investors the best of Aspect’s trading strategies. I am pleased to report that the fund returned an estimated 14% for the year and, with our major commitment to research, I have every confidence that the fund will continue to perform well.”

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