28/04/2010 Author: Zaki Abushal

Cadogan Management liquidates Japan FoHF

Cadogan Management has decided to liquidate its Kurihama Japan fund of hedge funds (FoHF), according to an investor document, as Japanese hedge funds continue to count the cost of sustained poor performance.

Hedge funds in the region have been enjoying a resurgence in 2010, but the turnaround in fortunes appears to have arrived too late for Cadogan.

The FoHF was set up in 2002 and enjoyed stable performance throughout. Its only blip arrived in 2008 when the fund fell 14.5%. Assets under management never exceeded $200m and began dwindling from the middle of 2008 onwards. Last year the fund was down 1.61% and dropped 1.43% in January 2010.

Japan-focused FoHFs are something of a rarity, largely down to problems over selection. However, this year has seen strong performances from Japanese single manager products from names including Arcus, Gam and Henderson, which have all returned more than 10% this year. As well as others, like Martin Currie and Alphagen, which are edging close to double-digit returns.

At the end of 2009, Cadogan took over the management of Torrey Associates six onshore and offshore funds, including: Torrey International, Torrey Asia, Torrey Emerging Markets, Torrey Europe and Peabody Global. The FoHF manages about $2.74bn in assets. Its largest fund is the Cadogan Alternatives Strategies fund with close to $1.5bn in assets under management.