Wednesday, 1 October 2014
Last updated 12 hours ago
Sep 4 2007 | 12:07pm ET
London-based Synapse Investment Management has shuttered one of its three fixed-income hedge funds after its main investor, a troubled German bank, pulled its money out.
While the Synapse High Grade ABS Fund had no direct exposure to the U.S. subprime mortgage market, its chief investor, Landesbank Sachsen Girozentrale, did. The state-owned bank was bailed out to the tune of €17.3 billion (US$23.6 billion) by its fellow state-owned banks, one of which, Landesbank Baden-Würettemberg, has agreed to buy it.
The Wall Street Journal reports that SachsenLB’s decision to withdraw its entire investment in the ABS fund forced Synapse’s hand. The firm blamed “severe illiquidity” for the closure, and said it has already sold some assets.
Synapse now has assets under management in its two remaining funds of about €300 million (US$409 million). At the end of July, the three funds boasted €500 million (US$681 million) in assets.
“We are going to look at starting new funds,” Synapse co-founder Mark Holman told Bloomberg News. “There are enormous opportunities in the ABS market caused by this enormous deleveraging and we intend to return with a fund that can exploit them.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...