Focus Capital Likely To Liquidate Fund After Losses

Mar 4 2008 | 12:25pm ET

A US$1 billion New York hedge fund is facing liquidation after dramatic losses in its Swiss mid-cap equity portfolio.

The losses at Focus Capital—which is unrelated to the British fund of funds shop of the same name—are yet to be finalized; PSolve Niche Opportunities, which invests in hedge funds, said it is writing off its entire investment in Focus, Financial News reports.

PSolve added that Focus is being wound up, but the hedge fund warned against jumping to that conclusion. Focus said its partners would “see within the next few days” about shutting down, with a spokesman telling FN, “at the end of the process we expect to have a liquidation.”

The firm has been battered by its Swiss mid-cap holdings, which have already been completely liquidated. The huge losses are a dramatic turn for the firm, which had previously known nothing but success: Since its founding in 2005, it posted annual returns of 38.6%, 112.2% and 45.7%, the latter figure for through October of last year.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.