Citadel Takes Over Most Sowood Assets After 50% Loss

From Reuters:
Speculation spread through bond markets on Friday that a Boston-based fund was in deep trouble, but by week's end, a person familiar with Sowood's operations said it had lost 8 percent in July and had met its margin calls.
More...

Maybe a hint at the price action of Friday's close!
 
Quote from crazy_trader:

Wow, when will this stop. After hour, MTG report they might lose up to $500+ mil on their investment.
More...

It will end when finally even "so-called" hegde fund managers are WILLING to accept, that it is even their DUTY to "hedge" their portfolios !! And when they learn to identify what ET participants are discussing every single day : the use of sound MONEY MANAGEMENT techniques ! I am NOT proud of my collegues ! :mad: :mad: :mad:
 
Quote from ASusilovic:

It will end when finally even "so-called" hegde fund managers are WILLING to accept, that it is even their DUTY to "hedge" their portfolios !! And when they learn to identify what ET participants are discussing every single day : the use of sound MONEY MANAGEMENT techniques ! I am NOT proud of my collegues ! :mad: :mad: :mad:
More...



no. you are very wrong here, hedge fund is for YOU the client to HEDGE your PORTFOLIO. Hedge funds normally don't hedge themselves but rather shoot for outsized gains. a hedge fund should only be used by you to HEDGE your other investments--or potentially as a high risk/high return portion of your assets.

regards,

surf
 
I like the part about.............."the non-performance of offsetting hedges". How much of a discount did Citadel get to takeover the fund?
 
Quote from nazzdack:

I like the part about.............."the non-performance of offsetting hedges". How much of a discount did Citadel get to takeover the fund?
More...

That's the rub. no one knows, hence, there still is, I guess uncertainty is not strong enuf a word, ignorance, as to the pricing of such assets.
 
You must log in or register to reply here.
Back
Top