Citadel buys $500m Sentinel assets at discount, Sentinel to sell most of its assets

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ASusilovic

From Chicagotribune.com:

Hedge fund Citadel Investment Group has purchased about $500 million of assets at discounted prices from Sentinel Management Group, people involved in talks to rescue customers of the troubled cash-management company said Thursday. "We are hearing the price was 85 cents to 90 cents on the dollar," said Jeffrey Barclay, a lawyer who represents some of the futures brokers whose money was trapped at Sentinel when the company froze redemptions earlier this week.

Barclay, who was among those aware Citadel was buying part of Sentinel's assets, said many brokers are angry because they will be receiving less than the full value of the securities that are being sold to Citadel. The assets, Barclay said, are considered to be high quality. "Citadel evidently bought the best portfolio...

http://www.chicagotribune.com/business/chi-fri_sentinelaug17,0,4185291.story

Where´s a discount there is CITADEL...!!!:D
 
Wow, they can do this? Sounds a bit like the Refco situation where for a percent or two more you basically signed away the ownership so what you thought was your asset became Refco's asset. Remember how Refco's laywer contended that the clients assets were in fact refco's assets because of this distinction (Jim Rogers probably still does).


That said I find it hard to have any sympathy with exchange members as the FCM supposed protection is just something dressed up to look like you have protection where there is NONE. If a big customer goes under YOUR asstes not his assets or the brokers assets or the broker owners assets are used to cover the loss. It is purely cosmetic. Probably originated as a way floor traders could get an option payoff profile - solicit enough accounts tpo cover what you imagined could be your worst loss and then be in a position to walk away and leave them carrying the bag if it happened.

Wonder if any hedge fund agreements contain similar clauses?
 
Quote from mokwit:

Wow, they can do this? Sounds a bit like the Refco situation
More...

Did you mention REFCO ? I hope one day and pray to God that Phillip Bennett will pass by and I can catch and "hug" him..:mad: :mad: :mad:
 
Citadel is the biggest vulture capitalist out there - buying out all the porfortlios of funds that go belly up at huge discounts.
 
i just read that sentinel managers sold a portfolio of AA... bonds to citadel at a 30% (!!!!!!) discount, without approval of customers of course.

if so, that is CRIMINAL against their customers IMO.

nobody can tell me cou can't liq a good bond - maybe at or better than 90ct/dollar (net worth)

that deal needs to be reviewed by lawyers, courts !!
 
Does anyone know what kind of returns these guys are doing. Seem to always be in the right place at the right time. I respect Griffin alot, he has accomplished a lot for a guy who hasn't seen 40 yet.
 
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