Tuesday, 30 September 2014
Last updated 8 min ago
Oct 22 2010 | 1:59pm ET
A pair of hedge funds run by Petra Capital Management have filed for bankruptcy, citing liabilities of as much as $500 million with assets of as little as $1 million.
Petra's Offshore Fund and Fund REIT Corp. sought Chapter 11 bankruptcy protection in Manhattan yesterday. The firm, founded by commercial mortgage-backed securities market pioneer Andrew Stone, said the filing was part of a restructuring agreement is has reached with a secured creditor.
The five-year-old firm said the funds' troubles were linked, unsurprisingly, to the crash of the real-estate market. The REIT fund was also backed by troubled insurance firm American International Group and follows a judgment against the funds won by one of its creditors, KBS Preferred Holding I.
Stone was a former star mortgage-backed trader at Salomon Brothers before moving on to build CMBS desks at Daiwa Securities and Credit Suisse First Boston. He was reportedly pushed out of the latter due to the aggressive loans he wrote.
It is unclear how the bankruptcy filing will affect Petra's other investments. The hedge fund is said to manage about $3.7 billion.
Sep 22 2014 | 4:15pm ET
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Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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