BlueCrest Closing ABL Hedge Fund

Jun 30 2009 | 12:09pm ET

BlueCrest Capital Management is shuttering an asset-based lending hedge fund battered by huge losses and investor redemptions.

The US$11 billion British firm is winding down its Specialty Asset Finance Fund, which managed US$200 million as recently as late last year, Reuters reports. Big losses—amplified by the leverage BlueCrest used—and big redemptions forced the fund to close many of its money-losing positions, further increasing its losses.

“BlueCrest saw redemptions rise after it lost money in the Petters fraud, and its leverage made things worse,” a source told Reuters. “It has had to deleverage fast to meet redemptions, forcing the fund to sell assets into a bad market and accentuating losses.”

BlueCrest lost some US$20 million in the alleged US$3 billion Ponzi scheme perpetrated by Minnesota businessman and hedge fund manager Thomas Petters.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…