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Unnamed hedge fund in trouble
- Thread starter wilburbear
- Start date
It's this guy who did the fraud
http://www.bloomberg.com/apps/news?pid=20601087&sid=adkXg9yrKXgQ&refer=home
Hedge-fund managers Gottex Fund Management Holdings Ltd. and Acorn Capital Group LLC are among at least 20 investors the FBI said may have been victimized by a fraudulent lending scheme that could exceed $2 billion.
The alleged fraud was disclosed last week after an FBI raid at the Minnetonka, Minnesota, headquarters of Petters Group Worldwide, a closely held investment company that owns Polaroid Corp. and Sun Country Airlines Inc. Chief Executive Officer Thomas Petters resigned on Sept. 29, according to Petters Group spokeswoman Andrea Miller.
Petters, 51, had been running a fraudulent investment operation since at least the mid-1990s, siphoning off money for his own use, according to an affidavit by Timothy Bisswurm, a special agent with the Federal Bureau of Investigation. Bisswurm said in the affidavit that investors made loans to companies owned by Petters, believing the money would be used to buy merchandise and sell it to retailers including Costco Wholesale Corp. and Sam's Clubs, a unit of Wal-Mart Stores Inc.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adkXg9yrKXgQ&refer=home
Do the numbers match up, or is the unnamed fund a new one?
Only one? There have to be dozens of hedge funds in trouble. Plenty of hedge funds have already shut down in 2008 and more will be shutting down in coming months.
Here is one example: "Laurus Capital Management, which manages $1.6 billion and has posted nearly 16% annual returns since 2001, is shuttering an $800 million portfolio after its largest investor said it would withdraw $300 million."
And here is another: "A $500 million activist European hedge fund run by Guy Wyser-Pratte, the New York arbitrageur, has slammed the door shut on investors trying to withdraw their funds in the latest signal that the shake-out hitting the sector is gathering pace. "
And more: "About 350 funds shut down in the first half of the year, a number that may double by year-end, Hedge Fund Research reported. Among the biggest casualties is Dwight Anderson's New York-based Ospraie Management LLC, which is closing its $2.8 billion commodities fund after losses of almost 40 percent this year."
Here is one example: "Laurus Capital Management, which manages $1.6 billion and has posted nearly 16% annual returns since 2001, is shuttering an $800 million portfolio after its largest investor said it would withdraw $300 million."
And here is another: "A $500 million activist European hedge fund run by Guy Wyser-Pratte, the New York arbitrageur, has slammed the door shut on investors trying to withdraw their funds in the latest signal that the shake-out hitting the sector is gathering pace. "
And more: "About 350 funds shut down in the first half of the year, a number that may double by year-end, Hedge Fund Research reported. Among the biggest casualties is Dwight Anderson's New York-based Ospraie Management LLC, which is closing its $2.8 billion commodities fund after losses of almost 40 percent this year."
Many are called few are chosen......