Investors Lose Almost Everything In BlueCrest Fund Of Funds

Dec 13 2010 | 12:47pm ET

BlueCrest Capital Management's specialist credit fund of hedge funds has been all but wiped out in the two years since the firm suspended redemptions.

The Special Asset Finance fund had just US$6 million in assets at the end of September, Reuters reports. But the fund's now almost entirely illiquid portfolio could still face further write-downs, and the fund still owes a lender $197 million.

SAF managed US$210 million when it suspended remptions in August 2008.

BlueCrest on Thursday told investors that Shezad Syed, who has managed the fund since its inception three-and-a-half years ago, has been replaced by Robert Heaselgrave.

"They said they needed different skills to maximize value, but it's a bit late now; there's no value left," one investor told Reuters.

"He gave us little hope of getting anything back," another investor said.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...