Sunday, 21 September 2014
Last updated 1 day ago
Feb 22 2008 | 10:40am ET
D.B. Zwirn & Co. will shutter its two largest hedge funds, as investors stormed the exits in the wake of an accounting scandal.
The New York-based hedge fund told investors that it would liquidate both the domestic and offshore versions of its Special Opportunities Fund, which together manage some $4 billion. Investors sought to redeem more than half that total, despite the fund’s strong performance; the onshore fund returned 11% and the offshore fund 7% last year.
Early last year, Zwirn told investors that it had uncovered improper accounting during its 2006 financial audit. An internal investigation turned up improper financial transfers and accounting of expenses, including those for founder Daniel Zwirn’s use of a private jet. According to the firm, it has resolved the issues that led to the problems and reimbursed investors, with interest.
The firm will reveal its plan for returning the assets next month. Published reports indicate that it could take as long as four years to liquidate the funds; some 60% of its assets are invested in illiquid securities, including private equity investments and debt-based derivatives.
Zwirn said it would continue to manage the $1 billion in assets that remain after the Special Opportunities liquidation.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.