Sunday, 21 September 2014
Last updated 1 day ago
Jun 3 2009 | 4:22am ET
Credit hedge fund shop BlueMountain Capital Management is in the money once again as the credit-default swaps market has come back to life.
The New York-based firm’s flagship hedge fund is up about 11% on the year, according to Bloomberg News. The $2.65 billion BlueMountain Credit Alternatives Fund has made $268 million on basis trades and other investments, the firm told investors in a May 14 letter, and it expects to make another $549 million on the trades.
CDS took a big hit last year following the collapse of Lehman Brothers and forcing federal regulators to intervene to facilitate the creation of CDS clearinghouses. Two are now operating in the U.S., although the one backed by BlueMountain, led by the CME Group and Citadel Investment Group, has yet to clear any trades.
Despite the turmoil in the CDS market, BlueMountain lost only 6% last year. The average hedge fund fell by double-digits.
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.