Thursday, 29 January 2015
Last updated 7 hours 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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…