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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...