Salida Capital Speaks Against “Unfounded” Rumors

October 4, 2011 James Heinsman Hedge Fund News

In response to recent gossip, Toronto-based Salida Capital stated that rumors of its collapse are “unfounded”. In fact, the hedge fund has increased its funding in energy and several other holdings as oil prices fall.

The fund explained that with the potential for oil to drop even lower, they have upped their “level of hedging in both the energy sector and the broad market.”

This past May, Salida revealed to investors that commodity prices are likely to rebound. According to Chief Executive Officer Courtenay Wolfe, the firm managed $900 million in assets at the time. The firm’s focuses primarily on natural resources, with more than 50% being placed in Canada.

In August, Salida’s investments in oil and gold were “costly, as the market has moved against us,” the company stated. “We believe that the reasoning was logical, but arguably ill-time. In hindsight, we underestimated the short term impact of forced selling.” Referring to energy stocks, the firm wrote: “Not only did the bounce not occur, but the sector has continued to sell off. Sell off is an understatement—it’s been decimated.”

Energy, Hedge Funds, investments, Oil Investments, Salida Capital,

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