Saturday, 30 August 2014
Last updated 1 day ago
Dec 4 2008 | 10:48am ET
Centaurus Capital will close its flagship hedge fund after investors unexpectedly rejected a restructuring plan.
Despite all of the troubles hedge funds have suffered this year, most have won the backing of their investors for restructuring plans, which usually include new lockups in exchange for lower fees. But investors in the Centaurus Alpha Fund, which had lost about a quarter of its value, refused to accept the new terms, the Financial Times reports. Just a handful of the Alpha Fund’s investors are expected to remain with Centaurus.
In October, Centaurus asked investors to accept a new two-year lockup in exchange for the return of 30% of their capital and reduced fees. The firm blamed a “deleveraging spiral” for its losses, which it called “far beyond what can be justified on the basis of fundamentals.”
Instead, Centaurus will return most of the $1.2 billion that is left in the Alpha Fund. The firm has imposed a 10% limit on monthly pay-outs, but hopes to wind the fund down as quickly as possible without being forced to sell assets at distressed prices.
But despite the failure of its top hedge fund—and the layoff of one-third of its staff—Centaurus will stay in business, the FT reports. It will continue to run its Asia hedge fund, and plans to launch new equity and credit funds next year.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...