Tuesday, 2 June 2015
Last updated 12 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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…