While executives and regulators debate the risks of hedge funds, Cornell’s Cayuga MBA Fund posts steady gains thanks to a diversified portfolio where retail and consumer tech investments offset energy and services losses. Cayuga reported third-quarter earnings of 2.95%, bringing it to an 11.19% gain thru Sept. 30, HedgeWorld reported. The fund, which is managed by a board of directors comprising faculty and external academics and investment professionals, has about $13.1 million in assets. They saw positive results with investments in CPI, a portrait manufacturer associated with Sears, and Navteq Corp., a provider of digital maps in North America and Europe. However, like many, Cayuga lost money from energy investments, more specifically long positions in Basic Energy Services. Cayuga officials told HedgeWorld they are concerned about the current situation in the housing market, a sentiment echoed by Thursday’s release of the Beige Book report. “We believe that the market will continue to be concerned about the effects of the cooling housing prices and its effects on consumer spending. Questions remain as to whether the bull market will continue through year’s end,” Cayuga officials noted.
