Thursday, 26 November 2015
Last updated 16 hours ago
Oct 2 2007 | 8:55am ET
Taking a page from fellow troubled hedge fund Absolute Capital Management, Australia’s Basis Capital has asked investors in its remaining fund for permission to split it in twain.
In a letter to clients last week, Basis proposed splitting the Pac-Rim Opportunity Fund into one specializing in Asian high-yield investments and another for its structured credit portfolio, the Financial Times reports, effectively quarantining its disastrous sub-prime linked investments from its less-disastrous high-yield portfolio. Investors would receive shares in both of the new funds. Pac-Rim dropped about 50% in June and July, Basis acknowledged last week; the Sydney-based firm’s other hedge fund, Yield Alpha, is in the process of liquidation.
Unlike ACMH, the Majorca, Spain-based hedge firm hit by co-founder Florian Homm’s resignation last month, Basis said it would not reset its high-water mark to start earning performance fees again. Basis suggested in the letter that splitting the fund would enable it to begin fundraising again, injecting liquidity into a fund whose illiquidity has forced the firm to suspend redemptions, allowing it to lift that restriction.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…