Hedge Funds Performance

Barnegat drops, but Bob Treue sees May as a blip


Bob Treue’s fixed income arbitrage shop, which returned 132% in 2009, suffered its first down month in a year and a half.

Bob Treue has maintained his composure despite losing 4.3% in May, his first down month in a year and a half. The month that did much worse damage to a variety of strategies was, he believes, just a bump. “It’s a sign that people are still very scared,” he said. “I don’t see anything dramatically changing.”

Treue’s firm, $432 million Barnegat Fund Management, hasn’t altered its focus as a result of May’s mayhem, which lowered the return of its flagship fixed income arbitrage vehicle, Barnegat Fund, to 7.1% for the year. “Generally, when people panic, we lose money