Troubled funds - list

[c1ue]

Goldman GEO bailed out
Goldman Alpha getting hit by redemptions
AQR (quant) and Tykhe (quant) rumored to be in serious trouble

http://www.telegraph.co.uk/money/mai...affdrv07053100

Renaissance (quant) loses 7% through 8/8

http://www.nytimes.com/2007/08/10/bu...ss&oref=slogin

Sowood shutting down after losing 60%

http://lawprofessors.typepad.com/mer...ds-hedge-.html

We all know about Bear Stearns and Amaranth much earlier.

Please add more as news unfolds.

[jk]

aaron's new hedge-fund implode-o-meter

check out aaron's new hedge-fund implode-o-meter, a fitting follow up to his mortgage implode-o-meter
http://hf-implode.com/

[Rajiv]

Re: Troubled funds - list

Latest News:

Sentinel Management Group has asked permission from the CFTC to halt money market redemptions.

[BRIEFING.COM] The market continues to deteriorate as speculation about a letter to clients from a money market fund halting redemptions is confirmed. Within the last 10 minutes, CNBC reported that Sentinel Management Group has asked permission from the CFTC to halt money market redemptions.

Sentinel's inability to meet significant redemption requests has exacerbated the liquidity concerns that have led many to believe a real credit crunch is forthcoming. As a result, the Financial sector has edged even lower and is now down 1.5% to act as the bottom continues to fall out of the brokers and banks.

Sentinel Management Seeks to Freeze Redemptions (Update1)

Aug. 14 (Bloomberg) -- Sentinel Management Group Inc., a Northbrook, Illinois-based money manager, has asked regulators for permission to halt investor withdrawals.

The firm contacted the Commodity Futures Trading Commission for approval to halt redemptions ``until we can honor them in an orderly fashion,'' according to an Aug. 13 letter to clients.

The firm managed $1.6 billion as of last month, according to a filing with the U.S. Securities and Exchange Commission. Sentinel's investments include short-term commercial paper, investment-grade bonds and Treasury notes, according to its Web site.

``Investor fear has overtaken reason and has induced a period in which most securities have simply ceased to trade,'' according to the client letter, which does not specify which funds are affected. ``We are concerned that we cannot meet any significant redemption requests without selling securities at deep discounts to their fair value and therefore causing unnecessary losses to our clients.''

[jk]

Re: Troubled funds - list

it doesn't look like sentinel is "a money market fund." it appears to me, at least, that this description is misleading. such a description from a source like reuters will certainly spread fear, however.

[Rajiv]

Re: Troubled funds - list

it doesn't look like sentinel is "a money market fund."

From the Sentinal Website -- They have a Treasuries Only Portfolio which should classify as Money Market

Allowable Investments:

» Treasury Bills, Notes, and Bonds
» Government National Mortgage Association
(Ginnie Mae) obligations
» Repurchase Agreements collateralized by
the above instruments

Objectives:

» Maximize capital preservation by investing only
in direct obligations backed by the full faith and
credit of the U.S. Treasury
» Provide a vehicle for investors who are required by law
or institutional policy to invest only
in "full faith" obligations of the U.S. Treasury
» Assure daily liquidity even in times of
high market volatility
» Achieve a gross rate of return usually superior to the
benchmark 90-day T-Bill rate

[jk]

Re: Troubled funds - list

From the Sentinal Website -- They have a Treasuries Only Portfolio which should classify as Money Market

you're right. but it's hard for me to believe that this is the portfolio for which they "cannot meet any significant redemption requests without selling securities at deep discounts to their fair value and therefore causing unnecessary losses to our clients."

[Rajiv]

Re: Troubled funds - list

They also have other funds that would classify as money market - Sentinel Prime Portfolio

Investment Objective:

The Prime Portfolio is intended to provide Sentinel's clients with a short-term investment alternative that combines safety of principal, liquidity and competitive yields through a portfolio of investment grade securities. An investment in the Prime Portfolio provides an indirect, undivided pro-rata interest in the underlying securities

» Preserve capital by investing in investment grade debt instruments
» Provide daily liquidity
» Achieve high money market yield consistent with preservation of capital
» Customize portfolios for clients with broader investment criteria


Allowable Investments:

» Short term commercial paper rated A1/P1 or higher
» Investment Grade Corporate Bonds
» Bank Time Deposits
» Repurchase Agreements collateralized by the above
» Other highly rated marketable securities

They also have Sentinel 125 Portfolio

Investment Objective:

The 125 Portfolio is intended to provide Sentinel's FCM clients with a short-term investment alternative that combines safety of principal, liquidity and competitive yields compliant with the CFTC's Rule 1.25. An investment in the 125 Portfolio provides an indirect, undivided pro-rata interest in the underlying securities.

Allowable Investments:

» Obligations of the U.S. Treasury and GNMA
» Short term commercial paper rated A1/P1
» Medium and long term debt rated AA or higher
» Bank time deposits
» Repurchase agreements collateralized by the above

The last one may be it

[rj1]

Re: Troubled funds - list

This is a question that has no real answer as I know they are unregulated, but roughly how many hedge funds are there?

[DemonD]

Re: Troubled funds - list

I think if you look at EJ's forum (or daily news) there are over 8,000 hedge funds, or what itulip calls USIPs

[rj1]

Re: Troubled funds - list

I think if you look at EJ's forum (or daily news) there are over 8,000 hedge funds, or what itulip calls USIPs

So right now we're looking at the equivalent of a bank run on 0.1% and it's a huge upset to the market...

(crickets)

[Guest]

Re: Troubled funds - list

RJ1 -

You just scored a beautiful three pointer on the basketball court. Compliments for pointing this out.

[Rajiv]

Re: Troubled funds - list

A list by Webster Tarpley in my post "Fed attempts to bail out bankrupt Wall Street speculators"