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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...