Friday, 28 November 2014
Last updated 1 day ago
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.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...