SHANGHAI, Ebullio Capital Management LLP, the UK-based hedge fund which last year was widely reported to have held a dominant position in the LME tin market, reported a minus 86% return in February, but remains in business.
In a letter to investors quoted by Bloomberg News, fund manager Lars Steffensen said that "extraordinary circumstances" had forced the fund "to liquidate and/or cancel parts of the physical book and liquidate some long-held speculative positions, mainly in LME non-ferrous metals."
Although the fund's cumulative return for the year to date is minus 96% and it has experienced "quite substantial redemptions" it maintains that it will carry on business as usual. "We took the hit," Steffensen told Bloomberg, confirming the contents of the letter and declining to elaborate. "I've always bounced back," he said.