The Barnegat Fund is managed by Barnegat Fund Management, Inc., a fixed-income, relative-value hedge fund manager based in Hoboken, New Jersey. We seek to exploit interest-rate anomalies in the large liquid markets of North America, Europe and the Pacific Rim. The financial instruments we trade include government bonds, interest-rate swaps and futures.
We scrutinize our investment universe using quantitative and fundamental analysis, focusing on large, long-term mispricing in the global fixed-income markets. This results in a selection of 15-20 trading opportunities based on the extent of the mispricing, risk and correlation to the existing portfolio. We capture these opportunities via multi-product trades such as 1) Yield Curve: We LIBOR yield curves using combinations of futures and swaps of varying maturities, 2) Bond vs. Bond: We identify and trade bonds that are mispriced compared to other very similar bonds, 3) LIBOR vs. Bond: We take advantage of anomalies in the spread between Bond and LIBOR curves. Trade collateral is mostly invested in global currencies and government bonds, to capture both interest income and capital appreciation.