Children's Investment Fund

If you have been investing for some time you will have heard of the Children?s Investment fund. This is very good hedge fund based in London and set up by Chris Hohn in 2003. This fund specializes in investing for the long term in securities all over the world.

Hedge funds require their members to invest for multi-year terms to give their fund managers a great deal more leeway in the investment strategies that they employ because they are not as locked into time constraints like some funds are.

TCI is an aggressive company, very active in the German stock exchange Deutsche B?rse, aggressive enough to force the resignation of the CEO when he tried to take control of the London Stock Exchange. The last couple of years however, this hedge fund has had to face severe cutbacks. The fund manager has had a very bad year, performance wise and several others of the managers have had bad years also. The fund has collectively decided to greatly scale back it?s activism and even cut fees and do away with several restrictions in an effort to draw clients and even keep the clients they currently have.

After a huge 43% loss last year the fund had to do something to keep clients from pulling their capital. This loss is so much bigger when we consider that between 2004 and 2007 the company posted an average 42% annual return. On top of this there was a total of nearly $400 million in just two investments. Chris Hohn has said that the company will be following a much more conservative approach and is scaling back its aggressive activism until it has more solid ground under it.

If you are an investor and have avoided this hedge fund because of it?s aggressive investing might want to reconsider. The new policy can very well lead this solidly directed company and it?s very history, assuming it continues on it?s present course.