Lenders Begin To Seize Peloton Assets

Mar 3 2008 | 10:20am ET

For troubled hedge fund Peloton Partners, things have gone from bad to worse.

After the London-based shop announced plans to liquidate one fund and suspend redemptions from another, some of its lenders have seized assets. According to Reuters, some of the fund’s lenders became even more skittish when Citadel Investment Group—which has made a cottage industry of buying portfolios from failing hedge funds, including Amaranth Advisors and Sowood Capital Management—indicated that it is not interested in the portfolio of Peloton’s ABS Master Fund.

The ABS fund's troubles stem from investments in some highly-rated fixed-income securities. In its letter to investors announcing the liquidation, Peloton wrote that it has “recently experienced difficulties in the challenging credit markets,” and complained that lenders have been tightening lending terms “without regard to the creditworthiness or track record of individual firms.”

Reuters reports that not all of Peloton’s lenders have gone nuclear; some are cooperating with the hedge fund’s plans for an orderly liquidation.

 


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note