(Harvest) How does a fund earn over $500 million in management fees yet lose over $1 billion for investors since inception? No, sorry. It’s not a hedge fund. It’s a mutual fund: the Marketfield Fund, arguably the poster child for returns chasing in the liquid alts space.
Here’s the background. The Marketfield Fund was launched in July 2007 and outperformed the S&P 500 by a cumulative 34.5% during the crisis. As one of a handful of long/short mutual funds, it stood to benefit from the rise of liquid alts in the years following the crisis.
From mid-2008 through the end of 2013, the Fund put up very good numbers and outperformed the equity long/short hedge fund index by a healthy margin.
