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

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...