Bad Bet Against Canada’s Housing Market Crushes Hedge Fund’s Returns
- Libertas Real Asset had 14% loss as housing prices stabilized
- The hedge fund is a play on the bursting of a credit bubble
Housing under construction in Toronto, Ontario, Canada.
Photographer: Galit Rodan/BloombergThis article is for subscribers only.
A small hedge fund betting on a Canadian housing market crisis had a double-digit loss last year as property prices held up and bank shares rebounded on optimism about a soft landing for the economy.
Spartan Fund Management’s Libertas Real Asset Opportunities Fund lost about 14% for the year, according to estimates from the fund’s manager seen by Bloomberg. It had been poised for a positive year until its US-dollar denominated units tumbled 11% in November and 13% in December.