Hedge Fund Parus With $2 Billion Posts Losses on Tech Shorts

  • London-based Parus Fund was short Advanced Micro, Seagate
  • Long/short equity hedge funds up 0.89% this year: Eurekahedge

Parus Fund, a $2 billion long-short equity strategy managed by London-based Parus Finance, declined in July as short positions in the technology sector hurt performance.

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The fund fell 1.9 percent last month, bringing its loss this year to 13.9 percent, according to an investor document seen by Bloomberg. The Eurekahedge Long/Short Equity Hedge Fund Index, which tracks global funds, is up 0.89 percent for the year, compared with an average hedge-fund return of 2.53 percent over the period. Parus Fund has gained an average of 15 percent each year since it started in 2003, according to the document.

Short positions in Advanced Micro Devices Inc., a Sunnyvale, California-based semiconductor company, and Seagate Technology Plc, a hard disk-drive manufacturer, detracted from performance last month, the letter said. AMD shares rose 33 percent in July while Seagate’s gained 32 percent, buoyed by equity market rallies globally. Additional short positions in unnamed mining and financial companies also hurt the fund’s performance last month, the letter said.

Monique Simmons, investor relations for Parus, declined to discuss the substance of the report. AMD and Seagate Technology did not respond to e-mailed requests for comment.

Parus Finance started in 2002 "as a privately owned independent asset management company," according to its website. It invests in equities globally through its long-short strategy, the website said.

The fund is managed by Fabrice Vecchioli, a graduate of Ecole Polytechnique in Palaiseau, France, who started his career in fixed income before switching to equities after the dot-com crash of 2000, according to a 2014 Barron’s article. The fund was originally based in Paris before moving to London in 2012, the article said.

Long positions in Facebook Inc. and Google-owner Alphabet Inc. contributed positively to returns in July, the letter said. Facebook shares rose 8.4 percent last month, while Alphabet’s climbed 12.5 percent.

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