Tontine Warns Investors To Expect Big Losses

Oct 7 2008 | 1:50am ET

Tontine Associates has told investors that more than half of their investments have been wiped out amid the market turmoil.

The $10 billion Greenwich, Conn.-based firm said it expects its year-to-date loss to be 65% once all of the numbers have been crunched for Sept. 30. The firm, led by Jeffrey Gendell, who enjoyed triple-digit returns in 2003 and 2005, has been betting on a global economic boom.

Tontine boasts a concentrated portfolio, especially heavily invested in energy and infrastructure companies. Many of those names, including Cleveland-Cliffs, Goodyear and U.S. Steel, have seen their stock prices plummet in recent months.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...