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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of