Major London based Hedge funds goes from $2 Billion to ZERO!

[Mega]

http://www.ft.com/cms/s/0/8e856344-e...nclick_check=1

All in a couple of days!
Mike

[Jim Nickerson]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

http://www.ft.com/cms/s/0/8e856344-e...nclick_check=1

All in a couple of days!
Mike

That's unfreakingbelievable, isn't it, Mike? Perhaps all those who lost or may lose their money, really didn't need it. You know, they say, "don't bet anything you cannot afford to lose."

[Mega]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

Here's their press statment:-
http://www.youtube.com/watch?v=ZQcUS...eature=related
Mike

[GRG55]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

Here's their press statment:-
http://www.youtube.com/watch?v=ZQcUS...eature=related
Mike

Hang in there Mike. With more of these implosions about to hit the news, in a few years you may be able to pick up a nice flat in Mayfair, or one of those done up Knotting Hill homes so popular with the hedgies, at a distresse price. Your (future) American wife will approve...

[GRG55]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

That's unfreakingbelievable, isn't it, Mike? Perhaps all those who lost or may lose their money, really didn't need it. You know, they say, "don't bet anything you cannot afford to lose."

Apparently these geniuses were levered X 32 times... :eek:

[GRG55]

And Another One Bites the Dust...

Don't good things come in three's? Here's number two this week.

From the FT:

Focus Capital collapse adds to hedge fund fears
By James Mackintosh in London
Published: March 5 2008 02:00
Focus Capital, a $1bn New York hedge fund, has been forced to liquidate its portfolio after missing margin calls from banks, it told investors -yesterday.

The fund, which had produced strong returns by investing in Swiss mid-cap stocks since starting in 2005, is now expected to shut down after losing about 80 per cent of its value.

The collapse is the latest to hit leveraged hedge funds, following the failure of Peloton Partners' $2bn ABS fund last week, and comes as worries are rising that forced sales by hedge funds could drive down prices.

Several other funds specialising in credit are close to crisis, according to investors and consultants, while a few smaller funds have had assets seized by banks or have required rescues by investors or allies.
In a letter to investors, the founders of Focus, Tim O'Brien and Philippe Bubb, said it had been hit by "violent short-selling by other market participants", which accelerated when rumours that it was in trouble circulated.

[nathanhulick]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

I wonder when they will stop calling these things "hedge funds" since they were obviously not hedged at all.

I noticed that this "stricken" firm gave "an emotional apology" to investors. Perhaps they should offer their investors a refund on the ~300 million they charged them in fees the previous year to manage the fund...

[GRG55]

Re: Major London based Hedge funds goes from $2 Billion to ZERO!

I wonder when they will stop calling these things "hedge funds" since they were obviously not hedged at all.

I noticed that this "stricken" firm gave "an emotional apology" to investors. Perhaps they should offer their investors a refund on the ~300 million they charged them in fees the previous year to manage the fund...

That would involve selling their prized country homes in the Cotswalds...

Gordon Brown will become a Conservative long before that happens...