Another Day, Another Shuttered Subprime Hedge Fund

Jul 6 2007 | 11:41am ET

The subprime mortgage securities market has plenty of hedge fund blood on its hands already, and it has claimed yet another victim.

Denver-based Braddock Financial Corp. announced yesterday that it will liquidate its $300 million Galena Street Fund, which has been buffeted by redemption requests as subprime investors have taken a beating.

News about the subprime market “just made investors nervous about being invested in the subprime market at all,” Braddock CEO Harvey Allon told Reuters. “People voted with their redemption requests.”

The fund, which returned just 7% last year, was down roughly 3% in the first quarter of this year.

Investors, whose redemptions had already slashed the size of the fund by a quarter, will get one-fifth of their money back by early next week, Allon said, with the rest coming “more frequently than quarterly” thereafter.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR