No Rising Sun: Endeavour Capital Drops 27%

Mar 20 2008 | 2:06am ET

Endeavour Capital is suffering from an extremely severe case of the Mondays. The London hedge fund plummeted 27% on Monday, burned by so-called “box trades” in Japanese government bonds, according to published reports.

The once US$2.9 billion firm wasn’t the only hedge fund loser on the trade—which bets on a simultaneous widening of 20-year spreads and narrowing of seven-year spreads—but it is thought to be the biggest.

Endeavor’s box trade was highly-levered, and the loss forced it to effectively eliminate its leverage, once as high as 18-times.

Endeavor CEO Paul Matthews blamed the turmoil surrounding Bear Stearns and the Bank of Japan for the troubles. He said the firm would remain in business.


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

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat