Traders At Hedge Fund Sailfish Ordered To Liquidate Positions

Jan 30 2008 | 12:21pm ET

Sailfish Capital Partners is reportedly in the midst of “blowing up” and is liquidating its entire portfolio as quickly as it can, according to sources with knowledge of the situation.

According to the sources, the two partners of the Stamford, Conn.-based hedge fund—Mark Fishman and Sal Naro—got into a shouting match yesterday and ordered their traders to liquidate all of the fund’s positions.

“They told everyone to start selling their positions, to liquidate,” said one source. “It’s basically blowing up. Everyone is sending out their resumes. They want out. It’s basically mayhem.”

A spokesman for Sailfish dismissed the notion that there was a fight, describing the event as a “discussion.” He added that traders are always loud, and that “it was not heated. It wasn’t anymore colorful than they usually have.”

Redemptions are due tomorrow, and many investors are reportedly taking advantage of this date to pull their money.

“Redemptions that are required are based on requests that were put in on Oct. 31,” said the spokesman, explaining that the fund has quarterly withdrawals with 60 days noticed, so the redemptions were not sudden or unexpected.

As for the reported liquidations, the spokesman said, “They continue to right size the fund based on market conditions and assets under management.”

Last year, Sailfish’s Multi-Strat Fixed Income Fund declined, losing more than 12% in August alone. In December, the fund’s performance tumbled another 4.8%.

The fund had about $1.9 billion in assets as recently as July, but two weeks ago it managed just $980 million. It is not known how much the firm has left.

Sailfish was founded by Fishman and Naro, the former an SAC Capital Advisors veteran and the latter a former UBS Securities global fixed-income chief.

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