Taconic sheds $1 billion in first half despite early surge above high-water mark

By Rob Copeland

Thu Jul 26, 2012

Firm cautions that “macroeconomic setting for investing continues to be fraught with risk.”

  Taconic's Ken Brody at the 2011 AR Symposium

Taconic Capital Advisors is shrinking.

Assets at the firm fell $1 billion to $6.85 billion in the first half of the year, chiefly as a result of redemptions from its largest strategy, which suffered its second annual loss in eight years in 2011.

Investors fled the now-$5.8 billion strategy, managed within the firm’s three Opportunity funds, despite the recovery of their high watermarks in the first quarter of the year, according to investor documents obtained by AR. The Taconic Opportunity Master Fund gained 6.24% through the end of June, compared with a 4.06% rise for the AR Event Driven Index. (Taconic also manages an older $1 billion event-driven strategy, returns for which were not immediately available.)

The fund dropped...

ISSN: 2151-1845 / CDC10004H


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