UPDATE: Focus Liquidates Hedge Fund After $800M Loss

Mar 5 2008 | 12:01am ET

Focus Capital, the New York hedge fund battered by losses in its Swiss mid-cap portfolio, was forced to liquidate its portfolio last week after missing margin calls.

The firm told investors yesterday that it would likely close after losing about 80% of its value, or about $800 million, the Financial Times reports. Founders Tim O’Brien and Philippe Bubb blamed “violent short-selling by other market participants,” exacerbated by rumors that the fund was in trouble, for the losses.

In the letter to clients, Focus—which is not related to the British firm of the same name—said the collapse in the value of its investments led its two main banks to force it to sell assets. A spokesman for the firm described it as an “avalanche.”

The fund, which had enjoyed double- and triple-digit returns in its first three years, had lost 8.6% in January. It opened February with some $1 billion in assets.


Focus Capital Likely To Liquidate Fund After Losses

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…