H20’s Alpha 10 fund suffers huge losses amid market rout
A hedge fund run by H2O Asset Management reportedly suffered a large loss during this week’s market turmoil.
The fund lost 15.8 per cent in one of its share classes on Monday, according to the Financial Times. Another share class of the fund reportedly lost 10.5 per cent in the same day.
The $900m fund is not domiciled in the EU and so does not disclose its performance publicly.
H20 Asset Management declined to comment.
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H2O is a subsidiary of French bank Natixis, whose shares closed down 21 per cent today. Yesterday the bank came under pressure after H2O, an asset manager in which it has a 50.1 per cent stake, told clients it had suffered “surprisingly large” losses.
The losses were reportedly because the asset manager’s bets on bonds and currencies turned sour during the volatile market swings this week.
Global stock markets have crashed this week amid growing fears over the coronavirus outbreak. The Dow Jones entered bear territory yesterday, after plunging 1,400 points. The FTSE 100 today suffered its biggest one day fall since the 1987 crash.
On Wednesday, former City minister Lord Myners, submitted a written question to the government, asking whether it plans to investigate H2O’s risk control strategies and executive leadership.
Last year Morningstar put one of H20’s funds under review due to concertns about investments in illiquid bonds issued by firms related to the controversial financier Lars Windhorst.