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Caxton Hedge Fund In Trouble??
- Thread starter THE-BEAKER
- Start date
Quote from THE-BEAKER:
leveraged up to the eyeballs.
have probably got the carry trade on.
got subprime exposure but dont know.
i think the problem is perception here.
a few funds and companies have a lost hundreds of millions if not a few billion.
the possibility that a fund could lose $50/60 /70 billion is sheer make believe.
'the titanic is too big to sink'
yawn, many, and maybe all of those things could be true. However, Kovner has been around forever and has probably "seen it all". I guess anything is possible, but I do not think he would put himself in a position to be blown out. He is not some 27 year old hotshit with too much money and way too much ego.
Tudor Raptor Fell 9% in July; Caxton's Global Lost 3% (Update3)
By Katherine Burton and Jenny Strasburg
Aug. 1 (Bloomberg) -- Tudor Investment Corp.'s Raptor Fund lost 9 percent in July as stock prices fell worldwide, investors said. Caxton Associates LLC's flagship hedge fund dropped about 3 percent.
The loss by Raptor, managed by James Pallotta in Boston, left the $8.9 billion stock pool down about 2.9 percent for the year through July 27. Bruce Kovner's Caxton Global Investments, an $11 billion fund, held on to a 3.5 percent gain for the year through July.
The $1.7 trillion hedge-fund industry has been roiled as losses in subprime-mortgage bonds spread to broader credit and equities markets. Boston-based Sowood Management LP said July 30 that it lost $1.5 billion, or more than 50 percent, on corporate debt trades. Bear Stearns Cos. yesterday blocked investors from pulling money out of an asset-backed securities fund after two pools run by the New York-based firm went bankrupt in mid-July.
``This is a market event much like we had back in 1998,'' Virginia Parker, who helps oversee about $1.8 billion at Parker Global Strategies LLC in Stamford, Connecticut, said in an interview. ``We've had an extraordinary withdrawal of liquidity from the credit markets that's affected every type of paper. The nervousness from the credit markets is spilling over into the equity markets.''
In August 1998, Russia devalued the ruble and defaulted on debts, sending global markets tumbling. The biggest victim was John Meriwether's Long-Term Capital Management LP, which lost $4 billion, or more than 90 percent of assets.
Long-Term Returns
Pallotta, 49, has posted an annual return of 19.2 percent since Raptor opened in October 1993, almost double the Standard & Poor's 500 Index, a benchmark for U.S. stocks.
Tudor was founded by billionaire trader Paul Tudor Jones, 52, and manages $20 billion. Its flagship Tudor BVI fund, which wagers on interest rates, currencies, commodities and equities, fell 3.1 percent in July and is up 4.6 percent for the year. The $10.3 billion pool has returned 24.2 percent a year since November 1986.
Caxton, which manages $16 billion, has gained more than 29 percent a year since 1991. Kovner, 62, trades many types of securities, a strategy known as macro investing. Most of the Global fund's decline came on stocks, investors said.
`Renewed Opportunities'
``We believe that this market change will continue to provide renewed opportunities in the macro trading environment,'' Caxton President Peter D'Angelo said today in a letter to clients. The losses ``are not unusual for us during periods of major market shifts,'' he said.
Executives at Greenwich, Connecticut-based Tudor and New York-based Caxton declined to comment.
The S&P 500 fell 3.1 percent in July, while Europe's Dow Jones STOXX 50 Index dropped 3.8 percent. In the final days of the month, the extra yield investors demand to own the riskiest corporate bonds had its biggest weekly rise in more than five years, and the dollar fell to a record low against the euro.
The average hedge fund returned 7.6 percent this year through June, according to data compiled by Chicago-based Hedge Fund Research Inc. That beat the 6.9 percent advance, including dividends, of the S&P 500.
Funds including Harbinger Capital Partners and Citadel Investment Group LLC have benefited from the market turmoil.
``Hedge-fund returns recently have been relatively anemic, but now that you've added volatility back to the mix, managers who are very good at trading will do very well,'' said Geoffrey Bobroff, an independent investment consultant in East Greenwich, Rhode Island.
Harbinger, Citadel Returns
New York-based Harbinger, run by Philip Falcone, returned 17 percent in July in its flagship fund that invests in distressed debt and shares of companies going through events such as mergers and bankruptcies, according to investors. Harbinger, which oversees $12 billion, has increased more than 40 percent this year, helped by bets that securities of subprime lenders would decline.
Chicago-based Citadel, founded by Kenneth Griffin, was unchanged for the month through July 26. The fund was up about 17 percent for the year, investors said. Earlier this week, Citadel bought most of the assets of Sowood Capital Management.
Harbinger and Citadel executives declined to comment.
Hedge funds are largely unregistered pools of capital that cater to wealthy individuals and institutions and allow managers to participate substantially in profits from investments. Their assets have more than doubled in the past five years.
By Katherine Burton and Jenny Strasburg
Aug. 1 (Bloomberg) -- Tudor Investment Corp.'s Raptor Fund lost 9 percent in July as stock prices fell worldwide, investors said. Caxton Associates LLC's flagship hedge fund dropped about 3 percent.
The loss by Raptor, managed by James Pallotta in Boston, left the $8.9 billion stock pool down about 2.9 percent for the year through July 27. Bruce Kovner's Caxton Global Investments, an $11 billion fund, held on to a 3.5 percent gain for the year through July.
The $1.7 trillion hedge-fund industry has been roiled as losses in subprime-mortgage bonds spread to broader credit and equities markets. Boston-based Sowood Management LP said July 30 that it lost $1.5 billion, or more than 50 percent, on corporate debt trades. Bear Stearns Cos. yesterday blocked investors from pulling money out of an asset-backed securities fund after two pools run by the New York-based firm went bankrupt in mid-July.
``This is a market event much like we had back in 1998,'' Virginia Parker, who helps oversee about $1.8 billion at Parker Global Strategies LLC in Stamford, Connecticut, said in an interview. ``We've had an extraordinary withdrawal of liquidity from the credit markets that's affected every type of paper. The nervousness from the credit markets is spilling over into the equity markets.''
In August 1998, Russia devalued the ruble and defaulted on debts, sending global markets tumbling. The biggest victim was John Meriwether's Long-Term Capital Management LP, which lost $4 billion, or more than 90 percent of assets.
Long-Term Returns
Pallotta, 49, has posted an annual return of 19.2 percent since Raptor opened in October 1993, almost double the Standard & Poor's 500 Index, a benchmark for U.S. stocks.
Tudor was founded by billionaire trader Paul Tudor Jones, 52, and manages $20 billion. Its flagship Tudor BVI fund, which wagers on interest rates, currencies, commodities and equities, fell 3.1 percent in July and is up 4.6 percent for the year. The $10.3 billion pool has returned 24.2 percent a year since November 1986.
Caxton, which manages $16 billion, has gained more than 29 percent a year since 1991. Kovner, 62, trades many types of securities, a strategy known as macro investing. Most of the Global fund's decline came on stocks, investors said.
`Renewed Opportunities'
``We believe that this market change will continue to provide renewed opportunities in the macro trading environment,'' Caxton President Peter D'Angelo said today in a letter to clients. The losses ``are not unusual for us during periods of major market shifts,'' he said.
Executives at Greenwich, Connecticut-based Tudor and New York-based Caxton declined to comment.
The S&P 500 fell 3.1 percent in July, while Europe's Dow Jones STOXX 50 Index dropped 3.8 percent. In the final days of the month, the extra yield investors demand to own the riskiest corporate bonds had its biggest weekly rise in more than five years, and the dollar fell to a record low against the euro.
The average hedge fund returned 7.6 percent this year through June, according to data compiled by Chicago-based Hedge Fund Research Inc. That beat the 6.9 percent advance, including dividends, of the S&P 500.
Funds including Harbinger Capital Partners and Citadel Investment Group LLC have benefited from the market turmoil.
``Hedge-fund returns recently have been relatively anemic, but now that you've added volatility back to the mix, managers who are very good at trading will do very well,'' said Geoffrey Bobroff, an independent investment consultant in East Greenwich, Rhode Island.
Harbinger, Citadel Returns
New York-based Harbinger, run by Philip Falcone, returned 17 percent in July in its flagship fund that invests in distressed debt and shares of companies going through events such as mergers and bankruptcies, according to investors. Harbinger, which oversees $12 billion, has increased more than 40 percent this year, helped by bets that securities of subprime lenders would decline.
Chicago-based Citadel, founded by Kenneth Griffin, was unchanged for the month through July 26. The fund was up about 17 percent for the year, investors said. Earlier this week, Citadel bought most of the assets of Sowood Capital Management.
Harbinger and Citadel executives declined to comment.
Hedge funds are largely unregistered pools of capital that cater to wealthy individuals and institutions and allow managers to participate substantially in profits from investments. Their assets have more than doubled in the past five years.
Caxton Down But Not Out
August 1, 2007
Caxton Associates said its flagship hedge fund fell 3% in July, but was still up more than 3% year-to-date.
The New York-based hedge fund group, in a letter to investors, said the $11 billion Caxton Global Investments, is up 3.21% in 2007, net of fees. Unlike its fellow bad-news headline makers, Caxtonâs woes are apparently not linked to sub-prime mortgage: Firm President Peter DâAngelo blamed âreversals in global equity marketsâ for the fundâs troubles, and wrote that âlosses like the above are not unusual for us during periods of major market shifts.â
DâAngelo said he took the âunusual stepâ of a performance update to combat âthe circulation of unfounded rumors in the internet community.â The Wall Street gossip blog DealBreaker reported rumors that Caxton was âblowing upâ yesterday, and Forbes magazineâs Web site this morning cited rumors that Caxton âmay be in trouble.â In addition, TheStreet.com this afternoon said the firm was selling assets to meet margin calls from JPMorgan Chase and Goldman Sachs.
August 1, 2007
Caxton Associates said its flagship hedge fund fell 3% in July, but was still up more than 3% year-to-date.
The New York-based hedge fund group, in a letter to investors, said the $11 billion Caxton Global Investments, is up 3.21% in 2007, net of fees. Unlike its fellow bad-news headline makers, Caxtonâs woes are apparently not linked to sub-prime mortgage: Firm President Peter DâAngelo blamed âreversals in global equity marketsâ for the fundâs troubles, and wrote that âlosses like the above are not unusual for us during periods of major market shifts.â
DâAngelo said he took the âunusual stepâ of a performance update to combat âthe circulation of unfounded rumors in the internet community.â The Wall Street gossip blog DealBreaker reported rumors that Caxton was âblowing upâ yesterday, and Forbes magazineâs Web site this morning cited rumors that Caxton âmay be in trouble.â In addition, TheStreet.com this afternoon said the firm was selling assets to meet margin calls from JPMorgan Chase and Goldman Sachs.
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Quote from Brandonf:
yawn, many, and maybe all of those things could be true. However, Kovner has been around forever and has probably "seen it all". I guess anything is possible, but I do not think he would put himself in a position to be blown out. He is not some 27 year old hotshit with too much money and way too much ego.
he like all these market wizard guys in these markets made their killings in the 80s and first 3/4s of the 90s. their y/y performance the past few years looks more like a midterm corporate bond fund !!!
the 80s were the heyday for trading i bet.
i only hope this volatility stays in the markets... i doubt it will though.
this is the real issue on this thread.
look at the power of rumour and information.
some people knocked me for putting this story on.
personally i would always rather know than not know and then make my own decision to dismiss it.
just look at beazer homes yesterday.
looks like nothing but rumour and completely unfounded.
fact is the stock went down 40%.
now are you going to tell me not to post that kind of rumour before that kind of move.
i know what i would rather hear.
give me a rumour any day of the week than a fact after the event.
look at the power of rumour and information.
some people knocked me for putting this story on.
personally i would always rather know than not know and then make my own decision to dismiss it.
just look at beazer homes yesterday.
looks like nothing but rumour and completely unfounded.
fact is the stock went down 40%.
now are you going to tell me not to post that kind of rumour before that kind of move.
i know what i would rather hear.
give me a rumour any day of the week than a fact after the event.
Quote from THE-BEAKER:
http://www.dealbreaker.com/
they have managed to get caught on us stock SEPR
they are heavily long this stock.
its down about 25% from last week.
.
You have got to be kidding? ! !
If their risk management is that weak, maybe they do need to be put out of business. The term "hedge fund" has got be the biggest misnomer around.