Peloton To Liquidate $2 Billion Fund

Feb 28 2008 | 3:58pm ET

U.K.-based Peloton Partners is latest hedge fund victim of the credit crunch. The firm has told investors that it is taking steps to “realize”—read: liquidate—its $2 billion Peloton ABS Fund’s portfolio, and is suspending redemptions on its Multi-Stratgey Fund, which has a very large position in the ABS Fund.

According to a letter to investors, the Peloton ABS Fund “has recently experienced difficulties in the challenging credit markets.” Although the credit quality of the ABS Fund’s assets remain intact, partners Ron Beller and Geoffrey Grant said the current liquidity situation in the asset-backed securities market has resulted in severe net asset value declines for the fund.

In addition, the managers point to lenders severely tightening their terms “without regard to the creditworthiness or track record of individual firms” making it impossible for the firm to meet its margin calls. And although they’ve been wracking their brains and “working night and day” to alleviate the situation, the partners said they’ve decided it was in their best interest to seek buyers for the fund’s assets.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR