Saturday, 28 March 2015
Last updated 13 hours ago
Jul 30 2007 | 1:38pm ET
Sowood Capital Management, burned by big losses in its bond portfolio due in part to fallout from the sub-prime decline, is out of the credit business for now. The $3 billion Boston-based hedge fund sold its credit positions to Citadel Investment Group, which said it assumed control of the “majority” of Sowood’s positions.
“This transaction provides for an orderly transference of risk between the parties, and I am proud of our team’s ability to execute this transaction in a timely fashion,” Kenneth Griffin, founder of Chicago-based Citadel, said in a statement. “Moreover, we appreciate the professional manner in which the Sowood team has handled this complex transaction from start to finish.”
Sowood, founded by former Harvard University money manager Jeffrey Larson, was reportedly down 10% year-to-date after suffering big losses in its fixed-income portfolio in June and July. The three-year-old firm is apparently not in danger of folding, however, and does not face redemptions until 2008.
Harvard is one of Sowood’s biggest investors, having seeded the fund in 2004 with some $500 million. The university, which sits on the biggest endowment in American higher education at $30 billion, was planning to increase its allocation to both Sowood and Sowood private equity spinoff Denham Capital Management, it said in December. No word on whether that remains the case.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…