LendingClub Fund Has First Negative Month on Valuation Fix
- Swings may increase under new methodology, CEO says in letter
- Fund oversaw about $700 million at the start of the month
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A LendingClub Corp. investment fund that’s struggled with withdrawals this year posted a negative return for August, the first decline in its five-year history, after overhauling how it values holdings and incurring losses on riskier debts.
The LC Advisors Broad-Based Consumer Credit Fund ended the month down 0.49 percent, cutting this year’s net return to 1.24 percent, LendingClub Chief Executive Officer Scott Sanborn told stakeholders in a letter and report Friday. It marks the fund’s first drop since it opened in 2011. The worst month had been June, when it broke even amid a surge in redemption requests.