Tuesday, 26 July 2016
Last updated 1 hour ago
Apr 4 2008 | 10:59am ET
London-based SPQR Capital is postponing its planned conquest of the credit hedge fund space, and is drastically scaling back its legions in response to market volatility.
The firm, which announced plans for a fixed-income hedge fund last year, and even raised almost US$400 million for it, is delaying its launch indefinitely, Bloomberg News reports. The retrenching firm indicated it may choose to permanently shelve the fund, originally set for launch in the second half of last year. Its initial delay came amid the subprime mortgage market collapse and ensuing credit crisis.
“We expect these volatile markets to persist through much of 2008 and as a result, we envisage reducing our cost base in order to adapt to market conditions,” SQPR said in an e-mailed statement. “Recent months have seen increasingly challenging credit markets and high levels of volatility.”
The firm, which had also planned to open an investment bank, will slash as many as half of its staff to cut costs, reducing its workforce from 20 to 10 or 12.