Saturday, 20 September 2014
Last updated 1 day ago
Oct 23 2008 | 1:42am ET
Another day brings news of another high-profile hedge fund seeking to restructure a struggling hedge fund.
Centaurus Capital, facing huge redemption requests, is asking investors to accept a new two-year lockup in its flagship Centaurus Alpha Fund in exchange for a return of 30% of their capital and reduced fees, The Wall Street Journal reports. The firm’s principals will speak with clients over the next few weeks in the hopes of finalizing plans by the middle of next month. If approved, the new terms would take effect on Dec. 1.
“In the last few weeks, global markets have ceased to function normally and have experienced unprecedented levels of dislocation,” Centaurus told investors in a letter sent yesterday. “Falling equity and credit markets have led to a deleveraging spiral which has led to further falls in asset prices to levels which we believe are far beyond what can be justified on the basis of fundamentals.”
The $2 billion Alpha Fund has lost 22% this year, and Centaurus has received withdrawal requests representing about half its assets.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.