Basis Asks Blackstone For Help In Sub-Prime Mess

Jul 24 2007 | 11:11am ET

Not everyone is unhappy about the growing sub-prime debacle: In fact, the Blackstone Group has made it a cottage industry.

Australian hedge fund Basis Capital Fund Management, which last week said it could see assets fall by half due to losses in sub-prime investments, has hired the New York-based private equity giant to advise it about the crisis. Blackstone is already advising the most high-profile hedge fund victim of the sub-prime markets, Bear Stearns.

Sydney-based Basis said that Blackstone will help it “prevent adverse pricing and selling of assets.” Last week, it warned investors that its Yield Alpha Fund, already down 14% last month, could be halved in value if lenders seize and sell off its assets at distressed prices. Both the Yield fund and its Aust-Rim Opportunity Fund—down 9% in June—had invested in the risky unrated portions of collateralized debt obligations.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note