Industry Hedge fund Key people Melissa Ko Headquarters New York City Type of business Private | Area served Worldwide Website www.covecap.com Founded 2008 | |
Covepoint Capital Advisors LLC is a privately held hedge fund, which is based in New York City, New York. The fund started off as part of Bear Stearns in 2005 and spun off into a standalone fund in 2008. Melissa Ko managed the fund since its inception. By 2015, the fund had grown to over $2.4 billion in managed assets and was transformed into a family office.
Ko started the fund in 2005 with Bear Stearns, before it was bought by JP Morgan Chase in 2008. JP Morgan Chase then spun out as a standalone fund, Covepoint Capital Advisors LLC. The fund had performed well while under Bear Stearns, having generated gains of 25.7 percent in 2007, 25.6 percent in 2006 and 46.9 percent in 2005, according to reports. As Covepoint was established as a standalone fund, they recruited a number of notable people.
In the period between 2005 and 2010, the fund grew at a rate of 22% per annum. Ko was interviewed by Bloomberg during this period, suggesting that the fund had grown to $785 million in October 2010. Some of this return was based on the return from the investment in Brazil during 2009. The Covepoint fund surged by almost 63 percent after the fund's management team invested at the right time in the country.
In 2011, the fund made its largest monthly loss after sticking with a bet that emerging-market currencies would gain against the U.S. dollar. In 2013, Ko took the steps to transform Covepoint into a family office. Covepoint made large profits throughout 2015 when they announced that the fund had gained 120% in a single year.