Key Takeaways
- • Sydney hedge fund Caledonia, which manages money for some of the city's wealthiest families, told clients in a confidential memo that it is "committed to broadening the long book over time."
- • The memo follows a long run of poor returns and heavy redemptions, and the firm's funds under management have fallen.
- • The commitment points to a plan to hold more stocks on the long side, according to the memo as reported.
Summary
Sydney hedge fund Caledonia has told clients it is "committed to broadening the long book over time," according to a confidential memo described in the reporting. The firm invests on behalf of some of the city's wealthiest families.
The pledge comes after a prolonged period of weak performance and heavy investor redemptions. Funds under management have declined since the firm's peak, and the available reporting ties the memo directly to that decline in assets.
The stated direction, broadening the long book, indicates Caledonia intends to expand its long equity exposure over time. The available source does not provide further detail on the size or timing of that expansion, the specific positions involved, or the firm's current assets under management.
The pledge comes after a prolonged period of weak performance and heavy investor redemptions. Funds under management have declined since the firm's peak, and the available reporting ties the memo directly to that decline in assets.
The stated direction, broadening the long book, indicates Caledonia intends to expand its long equity exposure over time. The available source does not provide further detail on the size or timing of that expansion, the specific positions involved, or the firm's current assets under management.
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