Hedge Fund Headache Slashes Danish Bank's Profit

Jan 31 2012 | 5:53pm ET

Denmark's second-biggest bank has taken a big hit in its bottom line, thanks to the country's second-ever class-action lawsuit.

Jyske Bank said it put aside 229 million Danish kroner (US$40 million) to cover any possible liability from the lawsuit, filed by angry investors in one of the bank's hedge funds. That, combined with a 299 million kroner write-down of its exposure to Greek sovereign debt, cut Jyske's profit by 40% to 601 million krnoer.

Jyske pronounced the results "tolerable considering the economic situation and the adverse effect from special circumstances of just below 500 million kroner on the profit."

Jyske said last week that it planned to appeal the Danish High Court decision allowing the class-action to the country's Supreme Court, and that it would review other legal options.

Investors have sued the bank over the Jyske Invest Hedge Markedneutral-Obligationer levered bond fund, which lost 800 million Danish kroner in performance terms in 2008. Jyske has already been sued 43 times over the hedge, losing 25 of those cases, and in 2009 was reprimanded by the Danish Financial Supervisory Authority for providing an "insufficient description" of the fund to clients.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.