Multi-family office suffers Peloton setback
A fixed-income fund of hedge funds managed on behalf of the Guinness family lost 7% of its value in the first quarter following the collapse of Peloton, which managed a portion of its funds.
A report published by the family’s Iveagh Private Investment House this year stated that an asset-backed securities fund managed by Peloton had been one of its five largest holdings.
The four other largest positions were managed by London Diversified, Alcentra European, Zaiss and Morley Fund Management. Last year, the fixed income fund registered a gain of 8.5% thanks to short positions in sub-prime mortgages.
The Iveagh fund was originally part of the Arundel Partners stable of funds of hedge funds acquired by the Guinness family in 2006.
Since launch in July 2003, the fixed-income fund had only suffered negative performance in nine months.
Iveagh Private Investment House, which also manages third-party funds, looks after $800m (€511.8m), of which Peloton accounted for no more than $1m, before losses forced it to shut in March.
Iveagh runs several other fund of hedge funds strategies. Their overall performance has been flat this year.
The Guinness family established its wealth through the brewery of the same name. Edward Guinness, the first Earl of Iveagh, established the family office in 1886.
His great great grandson, also called Edward, put together the Arundel deal along with other members of the family.
Last year Iveagh agreed to invest in Triple A Partners, which provides seed capital to alternative investment managers in Asia.
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