Hedge Fund News
Citadel. SAC. Millenium.
Steven Cohen. Eddie Lampert. John Paulson.
The latest happenings from the murky world of the hedge fund industry. Frozen investor redemptions, outsized profits and stories of market manipulation. It's all here in the Hedge Fund News section.
The SEC Issues Statement re: Madoff Scandal - We Messed Up
The SEC issued a statement on Tuesday night, saying that it had missed repeated opportunities to discover the Madoff fraud that has resulted in the disappearance of many billions of dollars.
The SE...
Citadel Suspends Redemptions In Kensington and Wellington Funds
In a move that really can't have surprised anyone, the Citadel Investment Group froze redemptions from its two biggest hedge funds until March 31st of 2009, at the earliest.
Kenneth Griffin, CEO of...
The Biggest Swindler of All-Time? Bernard L. Madoff
The sheer size of the fraud (estimated by some to be upwards of $50 billion dollars) that was perpetrated by Bernard L. Madoff has many people asking the question: how could this have happened?
How...
Bill Fleckenstein to Close Short-Only Hedge Fund, Open Long-Short Fund
Bill Fleckenstein is a name that is known to many.
Fleckenstein runs Fleckenstein Capital, a short-only hedge fund that has been around for about 12 years.
Bill pens a weekly article for MSN Mon...
John Paulson Continues to Dominate
The people who figured that John Paulson was in for a letdown after posting such astonishing returns in 2007 are in for a letdown of their own.
Paulson and Co. Inc. continues to outperform the over...
Fortress Investment Group LLC Halts Redemptions From Its Drawbridge Global Macro Fund
Fortress Investment Group LLC, besieged by investor redemption requests, announced earlier this week that it had halted redemptions from its Drawbridge Global Macro fund.
Fortress is a publicly tra...
Citadel Investment Group LLC Continues To Struggle in November
Can Citadel Investment Group LLC withstand a 47% YTD drop in its two biggest funds?
Can any hedge fund recover from a near 50% drop, especially in this environment? We're about to find out.
Bloo...
BVI Global Fund Ltd (of Tudor Investment Corp) Temporarily Suspends Withdrawals
Tudor Investment Corp. will be temporarily be suspending investor withdrawals in its mammoth $10 billion dollar BVI Global Fund Ltd. as the company seeks investor approval to split the fund into two s...
Satellite Asset Management LP Halts Client Withdrawals
Not to sound like a broken record, but another major hedge fund has announced that they will be halting client withdrawals for the time being.
Satellite Asset Management LP, which currently has abo...
Artemis Asset Management Ltd. Winding Down Their Artemis Absolute Return Hedge Fund
One of the best performing hedge funds of 2008, the Artemis Absolute Return Hedge Fund, will soon be wound down.
Artemis Asset Management Ltd., a behemoth $17 billion dollar money management firm t...
Citadel's Kensington Global Strategies Fund, Wellington LLC Fund Have Their Counterparty Credit Ratings Cut by S&P
More bad news for Citadel today.
The hedge fund giant suffered a counterparty credit rating cut on its two biggest funds, Citadel Kensington Global Strategies Fund Ltd and the Citadel Wellington LL...
$60 Billion Dollars in Hedge Fund Investor Redemptions in October
The hedge fund industry suffered on two fronts in October.
Not only did the hedge fund industry turn in one of its worst one-month performances ever, but it also buckled under a wave of investor re...
Citadel Continues to Deny, Deny, Deny
The Wall Street Journal continues to publish stories about the Citadel Investment Group, and the company continues to assert that they are not true.
A few weeks ago, the Wall Street Journal publish...
Icahn Enterprises GP Inc. Feeling the Pinch as Well
Carl Icahn, the legendary activist investor who has been a thorn in the sides of many CEOs, has been forced to pour more of his own money into Icahn Enterprises GP Inc. to deal with a flood of redempt...
Platinum Grove Asset Management LP, Another Myron Scholes Hedge Fund, Is Struggling As Well
Myron Scholes - if you follow the world of hedge funds, then that name should ring a bell.
Scholes, who won a Nobel Prize in economics, was a founding partner in the now infamous LTCM fund. LTCM fa...
Blue Mountain Capital Management LLC Halts Redemptions in Its Blue Mountain Credit Alternatives Fund
Investor redemptions in large hedge funds are certainly nothing new, especially in this crippling environment. The average hedge fund is down just over 20% on the year, and investors are pulling their...
HFRX Global Hedge Fund Index Down 19.6% YTD
The HFRX (Hedge Fund Research, Inc) Global Hedge Fund Index was down 19.6% for the year as of October 30th, 2008 (link below), confirming fears that the losses sustained by the global hedge fund indus...
Can the Citadel Investment Group Survive?
This prolonged (and violent) market downturn has called into question the long-term viability of many hedge funds. Manny Roman, co-chief executive of GLG Partners, recently stated that he believes tha...
Hedge Fund Industry Posts Worst Month Since At Least 2000
A recent article in Bloomberg (link below) pointed out that the hedge fund industry posted its worst month in September since at least 2000. The article pointed to the Eurekahedge Hedge Fund Index as ...
Millenium Global Investments Closes Their Emerging Credit Fund
Another hedge fund bit the dust on Tuesday, after Millenium Global Investments announced that they were shuttering their Millenium Global Emerging Credit Fund. The fund has a reported $800 million dol...
Christian Siva-Jothy Ignores Downturn in Hedge Fund Industry as His SemperMacro Fund Posts Large Gain in September
This is a tough time for many hedge fund managers, but not Christian Siva-Jothy.
Siva-Jothy's $440 million dollar SemperMacro fund posted an eye-popping 12.3% return in September, according to t...
Andrew Lahde Flips Wall Street The Bird, Rides Off Into Sunset
Andrew Lahde released a letter to his shareholders this week that has everyone in the hedge fund industry talking.
Andrew Lahde runs (or used to run) Lahde Capital Management, a small hedge fund...
Some Notable Hedge Fund Heavyweights, Including Steven Cohen of SAC Capital Advisors, Liquidated Many of Their Positions in Recent Days
Many people figured that last week's bloodbath was helped along by many hedge funds liquidating equity positions due to redemption demands. An article out on WSJ.com tonight (link below) explains that...
John Paulson Forced to Reveal His Big Short Positions in UK Banks
John Paulson, the hedge fund manager who made a name for himself after betting heavily against the US housing market, was forced to reveal his company's short positions in certain UK financial stocks ...
The Church of England Attacks Short-Sellers and Debt Traders
It's just not a fun time to be a short-seller right now. Financial markets worldwide are imploding, and more and more people are pointing their fingers of blame at one source: short-sellers. In the ey...
British Ban on Short Selling Will Prove To Be Disastrous For Some Hedge Funds
The temporary ban on the short-selling of certain firms in the United Kingdom will prove to be disastrous for some hedge funds, as they were forced to cover their positions at inopportune times and po...
SEC Might Require Hedge Funds to Disclose Short Positions?
The SEC is continuing their crusade against short-sellers, as Bloomberg is revealing tonight that the SEC might have plans to force hedge funds to disclose their short-sale positions and subpoena the ...
Soros Fund Management LLC Has Large Exposure to Lehman Brothers
Just like when Bear Stearns plunged earlier in the year, Lehman Brothers is plunging and stinging many of the hedge funds that made large investments in it.
Funds such as Wel... RK Capital Management LLP Down As Much as 30% in AugustAccording to an article that was recently published on Bloomberg (link below), RK Capital Management's various funds fell as much as 30% in August, mainly due to a rapid drop in the price of aluminum ... Mark "Goldfinger" McGoldrick to Run His Own Hedge FundMark "Goldfinger" McGoldrick made headlines last year when he quit Goldman Sachs. The trader, it was reported, was unhappy with his $70 million dollar bonus and decided to leave the... Hedge Fund Capital Inflows Have Slowed to a Trickle in 2008Is the bloom finally coming off of the hedge fund rose?
According to Wall Street & Technology (link below), capital inflows for hedge funds were a measly $16.4 billion dollars in the first quarter... Ospraie Management LP Is Shutting Its Ospriae FundOspraie Management LP sent a letter to its investors on Tuesday, informing them that the company would be shutting down the popular Ospriae Fund. The reason? A 38.59% decline so far... Atticus Capital Has Lost Over Five Billion Dollars in 2008According to various sources (Forbes, Reuters and others), activist hedge fund Atticus Capital has dropped over five billion dollars so far in 2008. The company was reported to be controlling over $20... What is the High Water Mark as It Applies to Hedge Funds?This is a term that you have probably heard mentioned (if you follow the world of hedge funds), but might not be entirely sure of what it means. The "high water mark... Altor Equity Partners Closes Three Billion Dollar Altor Fund IIIDespite "turbulent fundraising markets", Altor Equity Partners have successfully closed their third fund, Altor Fund III, according to a press release dated August 22nd. The company was looking to rai... Tudor Investment Tensor Fund Up Nineteen Percent YTDTudor Investment's Tensor Fund is currently up almost 19% YTD according to an article in the New York Post (which was subsequently confirmed by the company as being accurate). The Tensor Fund, run by ... Ron Insana Closing Insana Capital Partners "Legends" Hedge FundThe idea was a simple one. Ron Insana would open a hedge fund called "Legends". The hedge fund would be a "fund of funds", and would allow investors to invest in hedge funds that they norm... Harbinger Capital Partners Funds Raises Stake in CablevisionThings are about to get a bit more interesting for Cablevision and its management - it was revealed on Friday that Harbinger Capital Partners Funds had upped its stake in the company from 4.9 to 8.1%.... Andor Capital Management LLC Shutting Its DoorsIt's the end of an era as Andor Capital Management LLC has announced that it will be closing its doors in October.
According to a recent WSJ article titled "Andor Closin... BP Capital Drops in JulyBP Capital, the hedge fund run by famed investor T. Boone Pickens, suffered a 35% drop in the commodity half of its fund in July, according to a recent report in the New York Post. The article goes on... Chinese Hedge Fund Manager Shells Out $2.1 Million for Lunch Date with Warren BuffettWarren Buffett is without a doubt the best investor that ever lived. But are his words of wisdom worth $2.1 million dollars? Zhao Danyang thinks so. Buffett, as he does every ye... Horizon Asset Management Down More Than 20 Percent in Q1 2008The turbulent markets have exacted a toll on another extremely large family of funds, as Horizon Asset Management slid more than 20% in the first quarter of 2008. Hor... Pardus Capital Management LP Halts Investor RedemptionsAnother large, notable hedge fund has halted (temporarily) redemptions from its fund. Pardus Capital Management manages around $2 billion dollars.
John Meriwether Back in the News, For All of the Wrong Reasons
A John Meriwether fund is in trouble again.
John Meriwether doesn't ring a bell?
He was the man behind Long Term Capital Management (L...
Brevan Howard Asset Management's Flagship Fund Up 17% in 2008
It's not all doom and gloom in the hedge fund industry right now. Even though there is a continuous barrage of bad news (mostly related to banks not being so willing to extend margin to hedge funds), ...
Endeavor Capital Loses 27% In One Day
According to the Financial Times, Endeavor Capital, a three billion dollar London-based hedge fund, lost more than a quarter of its value in one day. This drubbing occurred on Monday, the same day tha...
Paulson and Co. Continues Their Red-Hot Run
If you thought that Paulson and Co. was destined for a let-down after 2007's massive year, then John Paulson would like to tell you that you are wrong so far.
Paulson and Co. hit it out of the park...
Carlyle Capital Corporation Gets Pounded After Failing to Meet Margin Calls
Carlyle Capital Corporation touched off a wave of selling on Thursday, especially in mortgage real estate investment trusts, after the company failed to meet some of its margin calls and received a de...
JP Morgan Tops List of Biggest US Hedge Fund Managers in 2007
Credit crunch? What credit crunch?
Even though three of the top ten largest hedge funds in the US lost an estimated $24 billion in assets last year, the overall assets of the top US hedge funds act...
Focus Capital is the Latest Hedge Fund Casualty
Focus Capital, a one billion dollar hedge fund (or at least, it used to be a one billion dollar hedge fund) based out of New York, announced that it was going to be liquidating its portfolio and shutt...
Blue River Asset Management Avoids Collapse By Raising $100 Million in New Capital
Hedge fund firm Blue River Asset Management managed to avoid the fates of several other prominent hedge funds (as in, total collapse) by raising $100 million in new capital from existing and new inves...
Phil Goldstein of Bulldog Investors Fund Challenging SEC on Hedge Fund Advertising Laws
Phil Goldstein of the Bulldog Investors Fund is preparing to take on the SEC over the coming weeks over the SEC's stance regarding hedge funds soliciting money from the public (or not being able to, a...
Spy Wars? Elliott Management Corp Sues Cedar Hill Capital Partners LLC, Alleging "Corporate Espionage"
Elliott Management Corp has sued rival hedge fund Cedar Hill Capital Partners LLC, alleging that the rival company "misappropriated" proprietary software that cost Elliott Management Corp millions of ...
Peloton Partners LLP Asset Seizures A Sign of Things to Come for Hedge Funds?
Yesterday we told you that Peloton Partners had decided to shut down their "ABS Master Fund", a fund that had bet against the subprime credit market and had made over 87% for its shareholders last yea...
Peloton Partners LLP To Shut Down ABS Fund; Halts Redemptions for Multi-Strategy Fund
Another day, another hedge fund casualty.
Today, the Wall Street Journal and Reuters both announced that Peloton Partners LLP would be closing its $2 billion dollar ABS fund and temporarily halting...
Highbridge Capital Management LLC Turned in a Mixed Year in 2007
The world's largest manager of hedge funds, JP Morgan, saw its Highbridge funds turn in decidedly mixed performances in 2007. JP Morgan purchased a majority stake in closely-held Highbridge Capital Ma...
Alan Greenspan Working as an Advisor for Paulson & Co? That's Just Wrong
Of all of the thousands of hedge funds that Alan Greenspan could have taken an advisory position with, he had to choose Paulson & Co., the hedge fund that made billions and billions of dollars in 2007...
Paulson Credit Opportunities Fund - How the Fund Had Such an Explosive Year in 2007
In 2007, according to Bloomberg, the Paulson Credit Opportunities Fund returned almost 600%, finishing up the year with a staggering gain of 589.9%. The Paulson Credit Opportunities Fund II, a slightl...
Ten of the Top Performing Hedge Funds of 2007
In 2007, news of poorly performing hedge funds seemed to dominate the financial headlines. There was the Global Alpha fund, which dropped 38%; there was the Global Equity Opportunities Fund, which dro...
Lahde Capital Up an Eye-Popping 1000% in 2007
Lahde Capital, a hedge fund run out of Santa Monica California by Andrew Lahde, has returned an absolutely ridiculous 1000%+ so far in 2007.
Lahde started the fund with about $10 million dollars in...
New Wave of Quant Fund Trouble Coming
I'm telling you right now - you are going to be hearing about another wave of quant fund selling and implosions any day now.
Quant funds are a funny thing - they work until they don't work. And whe...
Not All Hedge Funds Have Had Rough Years
You may think when you open up the Wall Street Journal or the business section of your local paper that all hedge funds have had a terrible year. That's just not true. Like with anything else, chaos f...
Breaking Down the Payout Structures of Most Hedge Funds
If you were ever wondering how hedge funds make money, then this article is for you.
If you were ever wondering what "2 and 20" or "3 and 50" meant when it came to hedge fund compensation, then you...
Want to Buy a Piece of Steven Cohen's SAC Capital? Here's Your Chance
When you talk about successful traders, and I mean, really successful traders, Steven Cohen is one of the first traders that should pop in your mind. Cohen is a spectacularly successf...
Quant Hedge Funds: How Did They Lose So Much Money?
Many people out there are probably confused when they hear about quant hedge funds taking huge losses over just a couple of days at the beginning of August. How does a "market neutral" fund suddenly t...
Goldman Sachs Global Equity Fund Gets 3 Billion Dollar Bailout
Goldman Sachs on Monday announced that they would be sinking $2 billion dollars of their own money into the deeply troubled Global Equity Opportunities Fund, after the fund reported a 28% decline just...
Tykhe Capital: Some Funds Down as Much as 31% Month to Date
Sorry to pile on the bad news, but it's bad out there in quant land.
Tykhe Capital, which runs a number of statistical arbitrage and quantitative long/short funds, has reported that as of August 9t...
Goldman Sachs Global Alpha Hedge Fund Down 26% in 2007
Is another major quant hedge fund about to bite the bullet?
Several investors in the private fund have told the press that the Global Alpha hedge fund has dropped 26% in value so far in 2007, follo...
Liquidation of Quant Hedge Fund Positions Behind Market Fluctuations?
This has not been a good year to run a quant hedge fund.
One after another, these "market neutral" hedge funds are getting taken apart, with most of the carnage coming this summer after the subprim...
Starting up a Hedge Fund: What are the Costs Involved?
To be sure, running a hedge fund sure sounds like an appealing job. The money, the power, the prestige; there is a reason why many highly educated people choose to work at a hedge fund. Sure the stres...
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