Surface of asteroid not so bad after all?
Sep 3rd, 2007 | Filed under: Hedge Fund Industry TrendsBNP’s Parvest Dynamic ABS Fund was held up as a poster-child for the international spread of sub-prime contagion earlier in August. Indeed it’s holdings prompted us to compare it to the protagonist in the movie Armageddon – a giant asteroid heading for the Earth (see posting). But like the victorious heroes in that movie, it appears BNP has managed to escape the (sub-prime) asteroid alive. The firm resumes NAV calculations on Friday announcing that the fund was down a mere 1.2% since NAVs ceased on August 7.
But while this beats the low expectations previously set by the firm (they predicted the fund was up to 4% below its August 7 closing price), it still leaves the fund down about 6% YTD. So the good news, if any, is that the fund didn’t continue the precipitous slide it experienced during the infamous first week of August.
Spaceship Parvest may not have escaped from the asteroid unscathed after all. But at least it seems to be limping home to Earth – just in time for the victory parade hosted by the BNP P.R. department.
Source: BNP Paribas Asset Management Website
