Thursday, 27 November 2014
Last updated 1 day ago
Apr 28 2008 | 7:13am ET
Strategic Value Partners is closing its $600 million market-neutral hedge fund because it expects the strategy to be on the ropes for at least five years.
The Greenwich, Conn.-based firm told investors that its market-neutral fund “is simply not viable in today’s environment” in a letter from founder Victor Khosla obtained by Bloomberg News. Investors in that fund, the Credit Opportunity Fund, which shed 6.4% in the first quarter, have the option of moving their investment to Strategic Value’s $4.4 billion distressed securities Restructuring Fund.
Investors who choose that option—Khosla indicated that two-thirds of Credit Opportunity clients are interested in such a move—will have performance fees waived until it recoups their loss in Credit Opportunities. Restructuring fell 2.3% in the first quarter.
Khosla, whose firm is raising funds for both Restructuring Fund and its private equity Special Situations Fund, said distressed debt offers a very attractive long-term opportunity.
“The nine months leading up to March 31 have seen a substantial sell-off in the credit markets, setting up that once-in-a-7-to-10-year investment opportunity,” he wrote.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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