Jonathan Wood wants a second chance.
The former star UBS trader, whose hedge fund SRM Global lost 85% of its value in its first two years of trading, plans to launch a second hedge fund in September, Financial News reports. And he’s apparently getting a good response from the very people for whom he has lost so much money since September 2006.
SRM revealed its plans for SRM II in a letter to its investors, whose losses have been trimmed to about 80% thanks to positive performance this year. The Monaco-based firm offered current clients who invest in the new offering better terms, including a performance fee waiver until Wood doubles their money.
The launch date for the proposed new fund coincides with the end of the lockup period for the first investors in the first SRM fund. The firm said that that fund will offer quarterly liquidity after September with 60 days’ notice.
SRM said the current economic environment is rife with opportunities, and added that it has won positive feedback from a number of investors in the existing, battered hedge fund.
SRM, which last year sued The Wall Street Journal for revealing its huge losses, recently lost its second attempt to force the British government to pony up more for Northern Rock, the now-nationalized bank that SRM owned more than 11% of.