Tuesday, 30 September 2014
Last updated 25 sec ago
Oct 8 2008 | 8:40am ET
Toscafund Asset Management has become the latest hedge fund firm to seek a restructuring in the face of big loses.
The London hedge fund manager on Monday asked investors they planned to flee its flagship fund, the US$3.5 billion Tosca Fund, which lost 35% in September, one of the worst months on record for the hedge fund industry. The firm said it plans to split the fund into a continuing share class and a redeeming share class, depending on how many investors plan to pull their month from the fund, which is down 52% on the year.
The fund was burned by firm founder Martin Hughes’ bet during the spring on banks, including Washington Mutual. Tosca was the second-largest shareholder of WaMu, which was seized by the U.S. government in one of the largest bank failures in U.S. history last month. Its deposits have since been bought by JPMorgan Chase.
Despite the dismal September news, Tosca said it is confident that at least half of the flagship’s investors will stick with the firm, and that it does not plan to unload any of its large, public stakes.
“It is not necessary to dispose of core holdings,” Mehmet Dalman, vice chairman of Toscafund, said. “The fund believes that the core retained holdings offer excellent value.”
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…
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