Saturday, 1 August 2015
Last updated 21 hours ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…