Looking back on Ellington’s crisis measures

By Simone Foxman

Wed Dec 11, 2013

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Absolute Return also revisits Ivanka Trump’s first year at 100 Women in Hedge Funds.


One year ago

»» Ivanka Trump was elected to the board of 100 Women in Hedge Funds, a professional association for women in the alternative investment industry. The high-profile businesswoman, who is also the vice president for development and acquisitions at The Trump Organization, was already a member of the non-profit.

Trump is now a year into her three-year term as director, which she officially began in January 2013. Although 100 Women in Hedge Funds declined to comment on her activities there, Trump has regularly popped up at events in the hedge fund world. In November, she introduced a panel of real estate executives at the Robin Hood Investors Conference in New York. The svelte 32 year old tweeted this picture from the event, which took place just five weeks after giving birth to her second child, Joseph Kushner, on October 14.

Meanwhile, 100 Women in Hedge Funds has been expanding its global reach. Its 12,000 members are now located in 17 countries across the globe, up from 10,000 members in 15 locations last year. In the course of the year, it held inaugural events in Hong Kong and the Cayman Islands.

Five years ago

»» Ellington Management Group, Michael Vranos's Greenwich-based shop, took crisis measures to stave off losses and minimize the impact of redemptions at one of the worst moments of the financial crisis. The firm shifted some mortgage assets to a separate vehicle, and laid off 16 employees.

Although Ellington managed to stay afloat despite the market turbulence, it suffered large redemptions, with assets declining from $5.40 billion in July 2007 to $2.70 billion by January 2009.

Full performance for Ellington's funds after the crisis was not available, though recent performance has been favorable. The Ellington Credit Opportunities Fund generated a return of 14.46% this year through October, according to a report by the HSBC Alternative Investment Group, outperforming the Absolute Return Credit Index, which was up 7.46% in the same period. The Ellington Mortgage Opportunities Fund rose 8.18% in that period, the HSBC report showed, compared with a 7.15% rise in the Absolute Return Mortgage Backed Securities Index.

Ellington's assets have increased dramatically in the past couple of years. The firm's hedge funds managed $4.30 billion as of midyear, up from $3.80 billion in January, and $2.8 billion at the start of 2013.

ISSN: 2151-1845 / CDC10004H