Thursday, 23 October 2014
Last updated 42 min ago
Apr 17 2008 | 12:45pm ET
Months after the subprime mortgage collapse wreaked havoc on the hedge fund world, Clinton Group’s Multistrategy Fund is still suffering.
Multistrategy was down 45% in the first quarter due to bad bets on mortgage-backed securities. Total assets are down by almost 80%—just $90 million from $400 million on New Years Eve—as investors have fled the sinking fund. Clinton Group’s hedge fund assets have fallen from $5.5 billion five years ago to just $600 million today. The firm also manages $7 billion in collateralized-debt obligations and $400 million in private equity.
Despite the setbacks, firm founder George Hall is apparently not discouraged, as he hopes to raise $150 million for a new fund, Bloomberg News reports. The new vehicle will invest in stocks and asset-backed bonds, featuring annual, as opposed to Multistrategy’s quarterly, liquidity.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...