King Street stockpiles cash
By Britt Erica Tunick
Mon Aug 8, 2011
The firm was already positioned cautiously amid volatile market conditions, which likely paid off during a week of wild volatility.
Cash is king for King Street Capital Management these
days—a fact that had previously elicited mixed
reactions among the firm’s investors but now looks
extremely prescient following Standard & Poor's downgrade
of U.S. Treasuries and the wild market gyrations that
After cashing out on several positions in the
firm’s portfolio at the end of 2010, and facing
limited investment opportunities, King Street started 2011 with
roughly 60% of the firm’s $19.5 billion in assets
under management in cash. Since the beginning of the year the
firm has put nearly $2 billion of that capital to work, but a
handful of investors say they are frustrated to be paying
management fees for a portfolio that is still so heavily in
cash. For the most part, however, the majority of King
Street’s investors believe the...
ISSN: 2151-1845 / CDC10004H
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