MSN MoneyCentral – Vega Asset Management, the hedge fund firm that has seen its assets plunge by billions of dollars in recent weeks following steep losses on bond and currency trades, has sought toreassure investors that it remains “strong and stable”.
The firm, which is based in Madrid and New York, has seen its assets shrink to as low as $1bn from its peak of $12bn two years ago.
A large proportion of the losses have come in recent weeks as the firm was caught out by a bond price rally and short position in the New Zealand dollar, which has been the best performing major currency over the past month.
In a letter to investors, seen by Financial Times, Michael Mann, president of Vega, said that September had been a “difficult month”, adding that while the firm was clearly not pleased with its funds’ recent performance, it remained convinced of its ability to deliver superior risk adjusted returns.
