Tuesday, 21 October 2014
Last updated 1 hour ago
May 14 2008 | 12:36pm ET
Less than two years after buying the emerging market credit shop, troubled hedge fund Absolute Capital Management plans to spin off Argo Capital Management.
AbCap bought Argo in January 2007 for £50.5 million (US$98.5 million). In September of that year, AbCap was rocked by the abrupt departure of co-founder Florian Homm and the revelation that Homm had put as much as a quarter of AbCap’s equity fund’s assets into highly-illiquid pink sheets. The firm then suspended redemptions, putting the illiquid assets into side pockets.
Now, AbCap management fears the negative publicity surrounded is adversely impacting the separately-managed Argo group, which manages US$1 billion in assets. The firm’s directors have recommended to its shareholders that it officially separate the group.
“The Argo business has always operated separately, with its own fund managers, risk controls and regulated entities, making the decision to demerge the two businesses a sensible and logical one,” AbCap CEO Jonathan Treacher said. “The board strongly believes the demerger will overall enhance shareholder value in the Absolute Capital and Argo businesses.”
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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. 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 ...