Friday, 25 July 2014
Last updated 9 min ago
Sep 13 2007 | 7:38am ET
August was an ugly time for hedge funds, sparing not even the biggest and most well-known. In fact, it seems as though the household names of the hedge fund world bore the brunt of its fury.
The latest casualties are Old Lane and Fortress Investment Group. Old Lane, recently enshrined as Citigroup’s flagship hedge fund following the announced closure of Tribeca Global Investments, repaid the favor with a 5.9% decline in August, according to Bloomberg News. The $4.4 billion fund, which Citi snapped up two months ago, naming founder Vikram Pandit head of Citi Alternative Investments, remains up year-to-date, at 1.9%.
Meanwhile, Financial News reports the Fortress’ global macro fund, Drawbridge, lost 4.7% in August, though the $6 billion fund remains up 3.17% through August.
By contrast, Citadel Investment Group is profiting from the pain. The Chicago hedge fund giant is up 15% through August, Bloomberg reports. Kenneth Griffin’s fund has made a cottage industry of snapping up assets from hedge funds on the way out. Last year, Citadel bought Amaranth Advisors’ portfolio, and earlier this year, the firm grabbed Sowood Capital Management’s holdings at a bargain-basement price. More recently, it agreed to buy $500 million in assets from troubled money manager Sentinel Management Group, though Sentinel clients are threatening lawsuits to stop the deal.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…