Investors in the world's first sports-betting hedge fund find themselves holding shares as worthless as losing wager tickets.
Centaur Corporate's Galileo Fund debuted in the middle of 2010. But earlier this month, the fund called in the liquidators and told investors that there's no money left—meaning losses of £1.6 million.
"Just over a week ago they sent a letter out saying they were going into liquidation and there was no money left," an investor told The Journal of Newcastle, U.K. "As recently as a statement on Dec. 13, detailing November trades, they said my account balance was over £20,000, but that was money which it would now seem didn't exist."
Galileo bet on events already in progress, counting on its fellow "in-running" gamblers to be too emotional, giving it the chance to get better odds. In its letter to investors, Centaur blamed its losses on "sheer bad luck."
Begbies Traynor has been appointed liquidator. The firm said that its Kirstie Provan and Jamie Taylor were named liquidators, and that "all known creditors will receive an estimated statement of the assets and liabilities from Begbies Traynor in due course."