Peloton Founders Set To Say Sorry

Mar 5 2008 | 8:28am ET

The founders of collapsed London hedge fund Peloton Partners are set to apologize to investors in a conference call today.

Geoff Grant and Ron Beller, both Goldman Sachs veterans, will explain how their once high-flying ABS Fund—which returned 86.6% last year during difficult times for credit markets—was undone so quickly. The fund, which managed US$2 billion as recently as January, was wiped out when its portfolio of mortgage-backed securities fell sharply in recent weeks.

As the hedge fund missed margin calls, banks began to seize its assets. The fund has since sold all of its assets to repay banks, which may still be on the hook for some of the losses.

Peloton is also expected to shutter its once-US$1.6 billion Multi-Strategy Fund, 40% of which was invested in the ABS fund.

Beller and Grant are also expected to discuss claims that some of its lenders changed their loan terms in spite of long-term margin agreements, as well as how much leverage the ABS fund was using.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of