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
Thursday, 19 January 2017
Last updated 11 hours ago
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.