Saturday, 26 July 2014
Last updated 21 hours ago
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.
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…