Saturday, 20 September 2014
Last updated 13 hours ago
Jun 27 2012 | 12:01pm ET
One of the hedge funds that harpooned JPMorgan Chase's London Whale has exited the trades that turned it a big profit and saddled the bank with a huge loss.
Saba Capital Management has closed the credit-default swap index trades it opened after noticing the dislocations caused by the huge trades made by JPMorgan's Bruno Iksil. Saba, which has $5 billion in assets, wasn't the only hedge fund to jump on that opportunity—which cost JPMorgan at least $2 billion—but media reports, including an extended analysis in The New York Times—gave Saba and founder Boaz Weinstein much of the credit.
It is unclear how large Saba's exposure was or how much it made. The firm has returned 2.3% this year through last week.
Another of the hedge funds that profited from JPMorgan's predicament, BlueMountain Capital Management, has been engaged by the bank to help it unwind the disastrous derivatives trades.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.