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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?